Question

Ashok borrowed Rs 24000 from Sudhir at 10% simple interest for 1.5 years. After 1.5 years, when
Ashok was to clear the debt, Sudhir insisted to pay him Compound interest (Compounded Half
yearly). How much more Ashok pay?​

Answer 1

Solution :-

Case 1) :- At SI .

• Principal = Rs.24000
• Rate = 10% PA
• Time = 1.5 years.
• SI = (Principal * Rate * Time) / 100

Putting values we get,

→ SI = (24000 * 10 * 1.5) / 100

→ SI = 240 * 15

→ SI = Rs.3600

______

Case 2) :- Rate is Compounded Half yearly .

• Principal = Rs.24000
• Rate = (10/2) = 5% PA
• Time = 1.5 * 2 = 3 years.
• CI = Principal * [(1 + Rate/100)^(Time) - 1]

Putting values we get,

→ CI = 24000[ (1 + 5/100)³ - 1]

→ CI = 24000[ (1 + 1/20)³ - 1]

→ CI = 24000[(21/20)³ - 1]

→ CI = 24000 * {(9261 - 8000) /8000}

→ CI = 3 * 1261

→ CI = Rs.3783 .

Therefore,

→ Ashok has to pay more amount of = 3783 - 3600 = Rs.183 (Ans.)

____________

Learn More :-

The difference between the compound interest & simple interest on a sum of ₹15000 for 2 years is ₹96 find the rate of in...

https://brainly.in/question/16231538?utm_source=android&utm_medium=share&utm_campaign=question

calculate the difference between compound interest and simple interest on rupees 5000 of 2 year at 8% per annum payable ...

https://brainly.in/question/16939635?utm_source=android&utm_medium=share&utm_campaign=question