Question

Rachna borrows Rs. 12,000 at 10 percent per annum interest compounded half-yearly. She repays Rs. 4,000 at the end of every six months. Calculate the third payment she has to make at end of 18 months in order to clear the entire loan.

Answer 1

For 1^st half - year :
P = Rs. 12,000; R = 10 % and T = `1/2` year

Interest = Rs. `[12,000 xx 10 xx 1]/[100 xx 2]` = Rs. 600

Amount = Rs. 12,000 + Rs. 600 = Rs. 12,600
Money paid at the end of 1^st half year = Rs. 4,000
Balance money for 2^nd half-year = Rs. 12,600 - Rs. 4,000 = Rs. 8,600

For 2^nd half - year :

P = Rs. 8,600; R = 10% and T = `1/2` year

Interest = Rs. `[ 8,600 xx 10 xx 1]/[100 xx 2]` =Rs. 430

Amount = Rs. 8,600 + Rs. 430 = Rs. 9,030

Money paid at the end of 2^nd half-year = Rs. 4,000

Balance money for 3^rd half - year = Rs. 9,030 - Rs. 4,000 = Rs. 5,030

For 3^rd half-year

P = Rs. 5,030; R = 10% and T = `1/2` year

Interest = Rs. `[5,030 xx 10 xx 1]/[100 xx 2]` = Rs. 251.50

Amount = Rs. 5,030 + Rs. 251.50 = Rs. 5,281.50