Question

Mukesh borrowed Rs. 75000 from a bank. If the rate of interest is 12% per annum, find the amount he would be paying after 1 1/2 years if the interest is compounded annually?​

Answer 1

Answer:

Step-by-step explanation:

Given

Money borrowed (P) = Rs 75000

Rate (R) = 12% p.a. or 6% half- yearly

Period (n) = 1 \frac{1}{2} \text { years } years or 3 half-years

(i) When the interest compounded yearly

Amount (A) = P {1 + (R / 100)}n

= Rs 75000 {1 + (12 / 100)} {1 + (6 / 100)}

= Rs 75000 × (28 / 25) × (53 / 50)

On simplification, we get,

= Rs 89040

(ii) When the interest compounded half-yearly

Then,

Amount = Rs 75000 {1 + (6 / 100)}3

= Rs 75000 × (53 / 50)3

= Rs 75000 × (53 / 50) × (53 / 50) × (53 / 50)

We get,

= Rs 446631 / 5

= Rs 89326.20

Answer 2

The formula for compound interest,

$A = P(1+\frac{R}{100})^{T}$

We have,

P = Rs. 75000

R = 12% per annum

T = 1 1/2 years = 3/2 years

So,  

$A = 75000(1+\frac{12}{100} )^{\frac{3}{2} }\\\\So, A = Rs. 88897.2$

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