Question

Michael borrowed 16000 from a finance company at 10% per annum, compounded half-yearly. What Amount of money will discharge his debt after 3/2 years?​

Answer 1

Answer:

2522

Step-by-step explanation:

P = 16000 , R = 10% , T = 3/2 Years

For half Year

R = R / 2 = 10 / 2 = 5 %

T = 3 half year

A = P × ( 1 + R / 100 ) ^ T

A = 16000 × ( 1 + 5 / 100 ) ^ 3

A = 16000 × ( 105 / 100 ) ^ 3

A = 16000 × ( 21 / 20 ) ^ 3

A = 16000 × 21 / 20 × 21 / 20 × 21 / 20

A = 2 × 21 × 21 × 21

A = 42 × 441

A = 18522

C.I. = A - P

C.I. = 18522 - 16000

C.I. = 2522