Question

Riya took a loan of 80000 from a bank . if the rate of interest is 10 annum . find the difference in amonut he would be paying after 1 year if tghe intrest is
Compounded annually
Compounded half yearly​

Answer 1

Answer:

Given,

Principal amount, P = Rs 80000

Rate of interest, R = 10% p.a.

Time period =

years.

We know, Amount when interest is compounded annually, A =

Now, For the first year, A=

For the next half year, this will act as the principal amount.

Interest for 1/2 year at 10% p.a =

Required total amount = Rs (88000 + 4400) = Rs 92400

(ii) If it is compounded half yearly, then there are 3 half years in

years.

n = 3 half years.

And, Rate of interest = half of 10% p.a = 5% half yearly

The difference in the two amounts = Rs (92610 - 92400) = Rs 210