A sum of Rs 2,400 is borrowed at a half-yearly compound interest rate of 6.25% 1. find the amount of the debt at the end of one year 2. find the amount of money required to clear off the debt after 1.5 years

Asked by zeeshan ali | 11th Nov, 2012, 03:51: PM

Expert Answer:

Amount  to be paid after 1 year

=actual amount (1+rate/100)^time

=2400(1+6.25/100)^2

=2709.375

For amount required after 1.5 year to clear of the debt=2400(1+6.25/100)^3

=2400(17/16)^3

=2878.7109

Answered by  | 18th Nov, 2012, 07:47: PM

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