Question

Arif took a loan of ₹ 80,000 from HDFC bank. If the rate of interest is compounded half-yearly. Find the sum due to him for 1 1/2 year at 10% per annum.

Answer 1

Answer:

Given,

Principal amount, P = Rs 80000

Rate of interest, R = 10% p.a.

Time period =

years.

We know, Amount when interest is compounded annually, A =

Now, For the first year, A=

For the next half year, this will act as the principal amount.

Interest for 1/2 year at 10% p.a =

Required total amount = Rs (88000 + 4400) = Rs 92400

(ii) If it is compounded half yearly, then there are 3 half years in

years.

n = 3 half years.

And, Rate of interest = half of 10% p.a = 5% half yearly

I have taken different values but it can be helpful