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. 

Asked by jackalamassery | 5th Jan, 2016, 02:42: PM

Expert Answer:

Given:Principal = Rs. 10,24,000
Period = 1 year
Interest compounded half yearly, hence n = 2
Rate of interest = 5% p.a, therefore 2.5% for half year.
 
begin mathsize 14px style straight A space equals space straight P space open parentheses 1 plus straight R over 100 close parentheses to the power of straight n therefore straight A equals space 10 comma 24 comma 000 open parentheses 1 plus fraction numerator 2.5 over denominator 100 end fraction close parentheses squared therefore straight A space equals space 10 comma 24 comma 000 open parentheses 1025 over 1000 close parentheses squared therefore straight A equals 10 comma 24 comma 000 open parentheses 41 over 40 close parentheses squared equals 1075840 therefore Amount space to space be space paid space by space Rahim space after space one space year space equals space Rs.10 comma 75 comma 840 straight C. straight I space equals space straight A minus straight P therefore straight C. straight I equals 1075840 space minus 10 comma 24 comma 000 equals Rs.51840 therefore The space interest space paid space equals space Rs. space 51 comma 840 end style

Answered by Priti Shah | 5th Jan, 2016, 03:19: PM

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