Question

Arif took a loan of 80,000 from a bank. If the rate of interest is 10% per annum, find the
difference in amounts he would be paying after 1
1
2 years, if the interest is compounded
annually and compounded half yearly.

Answer 1

A= p (1+r/100) ^2
A=80000(11/10) ^2
A=80000 (121/100)
A=96800
CI =A-P
CI =96800-8000
CI =16800
Compounded half yearly
A= p (1+r /100)
A=80000 (21/20)
A= 84000
CI =A-P
CI =84000-80000
CI=4000
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