Question

Suhani borrows Rs. 20,000/- from Pariza at 6% per annum. What total amount will Pariza get after 1years if the interest is being compounded half yearly?

Answer 1

Principal = Rs 20,000

Interest = 6% p.a.

Find the interest rate for half a year:

Interest rate for half a year = 6 ÷ 2 = 3%

Find the amount after half a year:

Interest = 3% of 20,000

Interest = 0.03 x 20,000 = Rs 600

Total amount = Rs 20,000 + Rs 600 = Rs 20.600

Find the amount after one year:

Interest = 3% x 20,600

Interest = 0.03 x 20,600 = Rs 618

Total amount = Rs 20,600 + 618 = Rs 21,218

Answer: Pariza will receive Rs 21,218 after 1 year

Answer 2

Answer : $\bold{Rs \: 21,218}$


Explanation -

Given :

Amount = Rs 20,000

Interest = 6% per annum.


Finding Interest for Half year -

if the interest is 6% per annum then for 6 months it'll be 3%

Half year = 3%


Finding Amount for first half year -

20,000 x 3/100 = 600

20,000 + 600 = 20,600


Finding Amount for second half year -

20,600 x 3/100 = 618

20,600 + 618 = 21,218


Hence :

$\bold{Answer \: is \: Rs \: 21,218}$