Advertisements
Advertisements
Question
Rahim borrowed Rs 10,24,000 from a bank for one year. If the bank charges interest of 5% per annum, compounded half-yearly, what amount will he have to pay after the given time period. Also, find the interest paid by him.
Advertisements
Solution
Given, Amount borrowed by Rahim (P) = 1024000 with a time period (T) = 1 yr.
Also, Rate of interest (R) = 5% per annum compounded half-yearly.
Let Amount = A
Now, for interest compounded half-yearly
`A = P(1 + (R/n))^(2T)`
⇒ `A = 1024000(1 + (5/200))^(2(1))`
Since, In half-yearly `R = R/2` and T = 2T
⇒ `A = 1024000(1 + (5/200))^2`
= `1024000 (1 + (1/40))^2`
= `1024000(41/40)^2`
= `1024000 xx (41/40) xx (41/40)`
= 640 × 41 × 41
= Rs. 1075840
Now, we know compound interest, CI = Amount – Principle
⇒ CI = 1075840 – 1024000
= Rs. 51840
Hence, interest paid by him is Rs. 51840.
APPEARS IN
RELATED QUESTIONS
Maria invested Rs 8,000 in a business. She would be paid interest at 5% per annum compounded annually. Find.
1) The amount credited against her name at the end of the second year
2) The interest for the 3rd year.
Mewa Lal borrowed Rs 20000 from his friend Rooplal at 18% per annum simple interest. He lent it to Rampal at the same rate but compounded annually. Find his gain after 2 years.
Find the amount and the compound interest on Rs 8000 for \[1\frac{1}{2}\] years at 10% per annum, compounded half-yearly.
Find the compound interest on Rs 15625 for 9 months, at 16% per annum, compounded quarterly.
Ramu borrowed Rs 15625 from a finance company to buy a scooter. If the rate of interest be 16% per annum compounded annually, what payment will he have to make after \[2\frac{1}{4}\] years?
A sum of money was lent for 2 years at 20% compounded annually. If the interest is payable half-yearly instead of yearly, then the interest is Rs 482 more. Find the sum.
Find the rate percent per annum if Rs 2000 amount to Rs 2662 in \[1\frac{1}{2}\] years, interest being compounded half-yearly?
A certain sum amounts to Rs 5832 in 2 years at 8% compounded interest. Find the sum.
Ishita invested a sum of Rs 12000 at 5% per annum compound interest. She received an amount of Rs 13230 after n years. Find the value of n.
The compound interest on a sum of Rs P for T years at R% per annum compounded annually is given by the formula `P(1 + R/100)`.
