Question

Kamal borrowed Rs 57600 from LIC against her policy at \[12\frac{1}{2} \%\] per annum to build a house. Find the amount that she pays to the LIC after \[1\frac{1}{2}\] years if the interest is calculated half-yearly.

Answer 1

Given: 
P = Rs 57, 600
R = 12 . 5 % p . a . 
n = 1 . 5 years\]
When the interest is compounded half - yearly, we have: 
\[A = P \left( 1 + \frac{R}{200} \right)^{2n} \]
 = Rs \[57, 600 \left( 1 + \frac{12 . 5}{200} \right)^3 \]
= Rs\[57, 600 \left( 1 . 0625 \right)^3 \]
= Rs 69, 089 . 06
Thus, the required amount is Rs 69, 089 . 06 .