what amount is to be rapaid on a loan of rs 12000 for 1 ½years at 10%per annum compounded galf yearly
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11th
Applied Mathematics
Basics of financial mathematics
Accumulation with simple and compound interest
What amount is to be repaid...
Maths
What amount is to be repaid on a loan of Rs. 12000 for 1
2
1
year at 10% per annum if interest is compounded half yearly.
Medium
Answer
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As interest is compounded half yearly, so number of conversion periods in 1
2
1
years is 3, So n=3
rate for half year =
2
1
×10%=5%
A=P(1+
100
R
)
n
A=12000(1+
100
5
)
3
=12000(
100
105
)
3
=Rs.13891.50
Compound interest =A−P
=13891.50−12000
=Rs.1891.50
Step-by-step explanation:
Principal for first 6 months = ₹12,000
Time = 6 months = 6/12 year = 1/2 year & Rate = 10%
I = ₹ 12000 × 10 × 1/2 = ₹ 600
100
A = P + I
= ₹ 12000 + ₹ 600
= ₹ 12600
= ₹ 12600, It is principal for next 6 months.
I = ₹ 12000 × 10 × 1/2 = ₹630
100
Principal for third period= ₹12600 + ₹630
= ₹ 13,230.
I = ₹ 13230 × 10 × 1/2 = ₹ 661.50
100
A = P + I
= ₹ 13230 + ₹ 661.50
= ₹ 13,891.50