Question

Rishi purchased a car from a car dealer worth ₹64000 on credit.If the dealer charges interest of 5% per annum reckoned half yearly, find the amount rishi has pay after one and half years.

Answer 1

Answer:

Rishi has to pay a total of amount = $68921

Step-by-step explanation:

Principal value, P = $64000

Rate of Interest, r = 5% annually

Since, the car is bought on credit, the interest will be compound interest.

The number of times the interest will be compounded is given to be half yearly ⇒ 2 times in a year , therefore, n = 2

Time, t = 1 and half year year

therefore, t = 1.5 years

$Amount=Principal\times (1+\frac{rate}{100\times n})^{n\times t}\\\\ Amount = 64000\times (1+\frac{5}{100\times 2})^{2\times 1.5}\\\\Amount=64000\times 1.0768\\\\\bf \implies Amount = \ 68921$

Hence, Rishi has to pay a total of amount = $68921