Question

Suppose you have savings. Your friend approached you and asked if you can lend him Php 10,000.00 for his tuition fee payment. He said he is willing to pay 5% interest per annum payable in 6 months. You agreed with the terms. How much interest should your friend pay you after 6 months? How much is the total amount you should receive after 6 months?​

Answer 1

Step-by-step explanation:

Question:-

Suppose you have savings. Your friend approached you and asked if you can lend him ₹ 10,000 for his tuition fee payment. He said he is willing to pay 5% interest per annum payable in 6 months. You agreed with the terms. How much interest should your friend pay you after 6 months? How much is the total amount you should receive after 6 months?

Answer:-

Given :-

• Principal = ₹10,000

• Rate = 5%

• Time = 6months

To find :-

The money we receive at the end of 6 months

Process :-

Firstly,we have to convert the rate of interest into half-yearly:-

$⇒Rate \: half-yearly = \frac{Rate}{2} \\ \\ ⇒Rate \: half-yearly = \frac{5}{2} \\ \\ ⇒Rate \: half-yearly = 2.5 \%$

∴ Compound Interest:-

$⇒CI = P (1+ \frac{r}{100} {)}^{n} \\ \\ ⇒CI = 10,000(1+ \frac{2.5}{100} {)}^{1} \\ \\ ⇒CI = 10,000× \frac{102.5}{100} \\ \\ ⇒CI = 10,000 × \frac{1025}{100×10} \\ \\ ⇒CI = ₹10,250$

∴ We can conclude that the money we will get after 6 months is ₹10,250.

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★ More to know

Compound Interest is the addition of money that the lender of the money get because another person invests/borrow money from him.

The formula is:-

$⇒CI = P (1+ \frac{r}{100 } {)}^{n}$

Where:-

CI - Compound Interest

P - Principal

r - Rate annually/half-yearly

n - No. of years

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Hope it helps you...

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