Question

Bela borrowed ₹25,500 from a finance company to start her boutique at 20% per annum compounded half-yearly. What amount of money will clear her debt 1½ year​

Answer 1

Given P = 25000, R = 20% compounded half yearly = 20/2, T = 1 1/2 = 3/2 compounded half yearly. = 3 years.

We know that A = P(1 + r/100)^n

                           = 25000(1 + )

                           = 25000(1 + )

                           = 25000()

                           = 25000 * 

                           = 25000 * 

                           = 25000 * 1.33100

                           = 33275.

Therefore the required amount = 33275 rupees.