Question

Laloo lent Baloo 32,500 to purchase a car at 12.5% per annum. If the interest is compounded semi-annually, find the interest paid by Baloo after 3/2 years.​

Answer 1

Answer:

Principal = Rs 32500

Rate of interest per annum = 12.5 %

Rate of interest per half year = 12.5/2 = 6.25 %

Time = 3/2 year

Amount at compound interest = P[1 + r/100]

n = 32500[1 + 6.25/100]^2*3/2

= 32500[1.0625]³

= 32500 x 1.1995

= 38,983.75

Compound interest = 38,983.75 - 32500 = Rs 6,483.75

Interest paid by laloo after 3/2 year = Rs 6,483.75

Step-by-step explanation:

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