Question

Sachin took a loan of Rs 20,000 from Vinod. If the rate of interest charged by Vinod is 6% per annum compounded half-yearly, what amount Sachin needs to pay to Vinod after one year?​

Answer 1

Given:

• Principal (p) = ₹ 20, 000
• Rate (r) = 6%
• Time (t) = 1 year

To Find:

• Amount after completing one year?

Formula Used:

$\\ \bullet{\underline{\boxed{\sf\pink{ Amount = p( 1 + \dfrac{r/2}{100} )^2 }}}}$

Solution:

After substituting values in formula;

$\colon\implies{\sf{ A = 20000( 1 + \dfrac{3}{100} )^2 }} \\ \\ \colon\implies{\sf{ A = 20000( \dfrac{103}{100} )^2 }} \\ \\ \colon\implies{\sf{ A = 20000 \times \dfrac{103}{100} \times \dfrac{103}{100} }} \\ \\ \colon\implies{\sf{ A = 2 \cancel{0000} \times \dfrac{103}{1 \cancel{00} } \times \dfrac{103}{ \cancel{100} } }} \\ \\ \colon\implies{\sf{ A = 2 \times 103 \times 103 }} \\ \\ \colon\implies{\sf\bold\orange{ A = 21218 }}$

Hence,

Sachin had to pay amount ₹ 21218.