Question

What amount is to be repaid on a loan of 8000 for 1 year at 10% per annum compounded half-yearly?​

Answer 1

p= 8000

r = 10% per year

= 10%/2 per half year = 5%=0.05

n =1 year = 2 half years

A =p(1+r)ⁿ

= 8000(1+0.05)²

= 8000×1.05² = 8820/-