Find the interest on ₹25000 at 10% interest per annum for 5 years
Answers
Step-by-step explanation:
The amount that Amit has to pay at the end of 18 months to clear the entire loan is Rs. 11720.625
Step-by-step explanation:
Prncipal Amount P = 25000 Rs.
Rate of Interest = 10% per annum
Since interest is compounded half yearly
Therefore, rate of interest for half year r = 10/2 = 5%
18 months = 3 half year
Therefore, period n = 3
Now, using the compound interest formula
A=P(1+\frac{r}{100})^nA=P(1+
100
r
)
n
For the first 6 months (1 period), Amit needs to pay
=25000(1+\frac{5}{100})^1=25000(1+
100
5
)
1
=25000\times (1.05)=25000×(1.05)
=26250=26250 Rs.
He paid = 8000 Rs.
Now Principal amount = 26250 - 8000 = 18250
Now in the next 6 months Amit has to pay
=18250(1+\frac{5}{100})^1=18250(1+
100
5
)
1
=18250\times 1.05=18250×1.05
=19162.5=19162.5 Rs.
Amit again paid Rs. = 8000
Thus, the new principal amount = 19162.5 - 8000 = 11162.5 Rs.
In the next 6 months Amit has to pay
=11162.5(1+\frac{5}{100})^1=11162.5(1+ 1005 ) 1
=11162.5\times 1.05=11162.5×1.05
=11720.625=11720.625 Rs.
Therefore, at the end of 18 months, Amit has to pay Rs. = 11720.625
Hope this answer is helpful.
Know More:
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