Giri lent rs.16,000 to Shekar for one and
1/2 years
at 10% per annum interest compounded
annually. If the interest was compounded
half-yearly, how much more interest
would Giri have earned?
Answers
If the interest was compounded half-yearly, then Giri would have earned an interest of Rs. 42 more.
Step-by-step explanation:
Principal, P = Rs. 16000
Step 1: When the interest is compounded annually
Time period, n = 1.5 years
Rate of Interest, R = 10%
We know,
Amount = P [1+R/100]ⁿ
⇒ Amount = 16000[1+10/100]^1.5
⇒ Amount = 16000 [1+10/100] [1+ (½*10)/100]
⇒ Amount = 16000 * 11/10 * 21/20
⇒ Amount = Rs. 18480
Therefore,
C.I. = Amount – Principal = 18480 – 16000 = Rs. 2480
Step 2: When the interest is compounded half-yearly
Time period, n = 1.5 years = 3 half-years
Rate of Interest, R = 10% = 10/2 = 5%
We know,
Amount = P [1+R/100]ⁿ
⇒ Amount = 16000[1+ 5/100]³
⇒ Amount = 16000 [21/20]³
⇒ Amount = 16000 * 21/20 * 21/20 * 21/20
⇒ Amount = Rs. 18522
Therefore,
C.I. = Amount – Principal = 18522 – 16000 = Rs. 2522
Step 3:
Thus,
Giri would have earned,
= Rs. 2522 – Rs. 2480
= Rs. 42 more as an interest
Learn more:
What rate compounded annually will double any sum in 6 years?
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Find the simple interest when rate is 5% half yearly for 2.5 years ?
https://brainly.in/question/8681090
Step-by-step explanation:
42 is the answer happy new yeae2021