Sangeta lentt rupees 40960 to amar to purchase a shop at 12.5% per annum .If the interest is compounded semi annually , find the interest paid by amar after one and a half year ?
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Rate of interest for 6 month period = 12.5% /2 = 6.25 %
Number of times the interest is compounded = 3 times in 1 1/2 years
Sum accumulated on compound interest in 1 1/2 years :
= Rs 40, 960 (1 + 6.25/100 )³
= Rs 40, 960 * 1.0625³ = Rs 49, 130.
Interest paid by Amar = Rs 49, 130 - 40, 960 = Rs 8, 170.
Number of times the interest is compounded = 3 times in 1 1/2 years
Sum accumulated on compound interest in 1 1/2 years :
= Rs 40, 960 (1 + 6.25/100 )³
= Rs 40, 960 * 1.0625³ = Rs 49, 130.
Interest paid by Amar = Rs 49, 130 - 40, 960 = Rs 8, 170.
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