Question

Bakul borrowed 5000 from a finance company at 8% p.a. compound half-yearly. What amount of money
will discharge his debt after 1 year?​

Answer 1

Dear Student,

● Answer -

5408 Rs

● Explanation -

# Given -

P = 5000 Rs

r = 8 pcpa

t = 1 year

# Solution -

Total after 6 months is -

Total = P × (100 + r × t)/100

Total = 5000 × (100 + 8 × 1/2) / 100

Total = 50 × 104

Total = 5200 Rs

After next 6 months this amount will be -

Total = P' × (100 + r × t)/100

Total = 5200 × (100 + 8 × 1/2) / 100i

Total = 52 × 104

Total = 5408 Rs

Hence, Rs 5408 will discharge his debt after 1 year.

Thanks dear. Hope this helps you..