Giri lent Rs 16000 to Shekhar for 1 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
Answer:
If the interest was compounded half-yearly, then Giri would have earned an interest of Rs. 4.
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%
5
4.0
We know,
Amount = P [1+R/100]
→ Amount = 16000[1+10/100)^1.5
→ Amount = 16000 [1+10/100] [1+ (1/10)/
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]
→ Amount = 16000[1+ 5/100]³
→ Amount = 16000 [21/201³
→ 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
Step-by-step explanation:
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