Question

Roma borrowed Rs 64000 from a bank for \[1\frac{1}{2}\] years at the rate of 10% per annum. Compute the total compound interest payable by Roma after \[1\frac{1}{2}\]  years, if the interest is compounded half-yearly.

 

Answer 1

Given: 
P = Rs 64, 000
R = 10 % p . a . 
n = 1 . 5 years
Amount after n years: 
\[A = P \left( 1 + \frac{R}{200} \right)^{2n} \]
\[ = 64, 000 \left( 1 + \frac{10}{200} \right)^3 \]
\[ = 64, 000 \left( 1 . 05 \right)^3 \]
 = Rs 74, 088
Now, 
CI = A - P
 = Rs 74, 088 - Rs 64, 000
 = Rs 10, 088