Question

Veena borrowed Rs. 20,000 from the money lender at the rate of 4% per anum for 1.Whole 1/2 years compounded half-yearly. find the amount she has to pay at the end of 1.Whole 1/2.

Plzz give me the solution of this with explanation.​

Answer 1

If the compound interest is half yearly .

Amount = P [ 1 + r/200]²ⁿ

     =  $ 20000 [1 + 4/200]³

     = $ 20000 x 51/50 x 51/50 x 51/50

    = $ 20000 x 132651/125000

    = $21224.16

Amount =  $21224.16