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Amita Wanted to Start a Business for Which She Needed Rs, 40000. She Borrowed this from Dolly at 10% P.A Compounded Semi-annually. - Mathematics

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Question

Amita wanted to start a business for which she needed Rs, 40000. She borrowed this from Dolly at 10% p.a compounded semi-annually. Find the extra amount that she needs to pay at the end of two years to clear her debt. 

Sum
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Solution

Amount = `"P"(1 + "r"/200)^(2"t")`

Amount = `40000 (1 + 10/200)^4` = Rs 48620.25

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Chapter 1: Compound Interest - Exercise 1.1 [Page 6]

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Frank Mathematics - Part 2 [English] Class 10 ICSE
Chapter 1 Compound Interest
Exercise 1.1 | Q 13 | Page 6
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