Question

Mukesh borrowed 75000 from a bank. If the rate of interest is 12% per annum, find
the amount he would be paying after 1 years if the interest is
2
(i) compounded annually
(ii) compounded half-yearly.​

Answer 1

P=75000

R=12%

T=

2

3

years

when compounded annually,

A=P(1+

100

R

)

T

75000(1+

100

12

)

2

3

=Rs.88897.2

when compounded half yearly,

A=P(1+

200

R

)

2T

75000(1+

200

12

)

2×

2

3

Rs.=89326.2