Arif took a loan of Rs 80,000 from a bank. If the rate of interest is 10% per annum, find the difference in amounts he would be paying after years if the interest is (i) Compounded annually (ii) Compounded half yearly
Praneethworldtopper:
after how many years
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compounded annually
=80000(1+10/100)^1
=80000(110/100)
=88000
compounded half yearly
=80000(1+10/2x100)^(2x1)
=80000(105/100)^2
=80000x105/100 x105/100
=88200
difference=88200-88000=200
=80000(1+10/100)^1
=80000(110/100)
=88000
compounded half yearly
=80000(1+10/2x100)^(2x1)
=80000(105/100)^2
=80000x105/100 x105/100
=88200
difference=88200-88000=200
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