Question

What amount is to repaid co a loan of 12000 for 15 years at Wyk peramum compounded
half yearly?​

Answer 1

Answer:

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