Question

Paid quarterly interest on borrowed amt of ₹5000 at 12%.p.a.

Answer 1

Explanation:

If the rate of interest is R% per annum and the interest is compounded half-yearly, then the rate of interest will be R/2% per half year.

Q: Find the compound interest on Rs. 10000 for 1½ years at 20% per annum, interest being payable half-yearly.

Solution: We know, R= 20% per annum

or, 10% per half year.

T= 1½ years = 3 half years

Original Principal (P) = Rs. 10000

I for the first half-year =

Rs. \dfrac{10000 \times 10 \times 1}{100} = Rs. 1000

P for the second half-year = Rs. 10000+1000= Rs. 11000

I for the second half-year =

Rs.\dfrac{11000 \times 10 \times 1}{100} = Rs. 1100

Amount at the end of the second half-year = Rs. 11000 + Rs. 1100 = Rs. 12100

P for the third half year= Rs. 12100

I for the third half-year =

Rs. \dfrac{12100 \times 10 \times 1}{100} = Rs. 1210

Amount at the end of third half-year = Rs. 12100 + Rs. 1210 = Rs. 13310

\therefore C.I. = Rs. 13310 – Rs. 10000 = Rs. 3310