Question

arif took a loan of 80000from a bank.If the rate of interest is 10%p.a..,find the difference in amount he would be paying after 1 1/2 years if the interest is (i)compounded annually and (ii)compounded half-yearly.

Answer 1

compounded annually

Answer 2

(i) Compounded annually:P = Rs 80000R = 10% p.a.T =Amount for 1st year.= Rs 80000= Rs 80000SI on Rs 88000 for next= Rs 88000= Rs 44010 = Rs 4400∴ Amount = Rs 88000 + Rs 44000= Rs 92400(ii) Compounded half yearlyP = Rs 80000R = 10% p.a. = 5% per half yearT =A ==== Rs 10212121= Rs 92610Thus, the difference between the two amounts= Rs 92610 - Rs 92400= Rs 210