Monu took a loan Rs. 32,000 for one year at 20% and am compounded quarterly how many he has to pay after one year
Answers
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Answer:
Given that,
Principle (P)=Rs. 32000
Time (T)=1 year
Rate R=20% per annum
Since it is compounded half yearly, the rate of interest is considered for the half yearly period.
∴ Rate (R)=
2
20
%=10% per half-year.
and Time (T) is 1 year, which is equal to 2 half-years.
We know that,
Amount=P(1+
100
R
)
T
[Compound interest formula]
∴ 32000(1+
100
10
)
2
⇒32000(
100
110
)
2
=32000×
100
110
×
100
110
∴ Amount=38720
We also know that,
Interest=Amount−Principle
⇒38720−32000
∴ Interest=Rs.6720