Question

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

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 $\frac{1}{2} \text { years }$  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