Question

pulkit borrowed RS 16000 from finance company at 15% per annum compounded half yearly.what amount of money will discharge his debt after 18 months

Answer 1

$R = P (1 + r )^n \\ \\ As\ interest\ is\ compounded\ half\ yearly,\ the\ number\ of\ times\\ \ compounding\ is\ done\ =\ n\ =\ \frac{18\ months}{6\ months} =\ 3 \\ \\ So,\ \ R = 16,000 [ 1 + \frac{15}{100} ]^3 = 16,000 [ 1.15^3 ] = Rs 24,334.$