Arif took a loan of Rs 80,000 from a bank. If the rate of interest is 10% per annum, find the difference in amounts he would be paying after 121 years if the interest is(i) compounded annually.(ii) compounded half yearly.

Question

Arif took a loan of Rs 80,000 from a bank. If the rate of interest is 10% per annum, find the difference in amounts he would be paying after 121​ years if the interest is(i) compounded annually.(ii) compounded half yearly.

Filo · Accepted Answer

Compounded Half-yearlyFor the first yearP=80000,R=10% ,T=1Interest=100PRT​=100(80000×10×1)​=8000Amount=Interest+Principle=80000+8000=88000For second-year principle will be the amount of previous year (since interest is compounded)P=88000,T=6months=126​years=0.5,R=10%P.a.Interest=100PRT​=100(80000×10×0.5)​=4400Totalinterest=88000+4400=92400Compounded Annually P=80000,R=10/2% , T= \dfrac{3}{2}years  , n=3  A = 80000 \left( 1+\dfrac{5}{100}\right)^3  A = 80000 \left(\dfrac{21}{20}\right)^3  A = 92610 Thusthedifferencebetweentheamounts= 92610-92400 = Rs. 210

Question Text	Arif took a loan of $R s 80, 000$ from a bank. If the rate of interest is $10%$ per annum, find the difference in amounts he would be paying after $1 \frac{1}{2}$ years if the interest is (i) compounded annually. (ii) compounded half yearly.
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Arif took a loan of $R s 80, 000$ from a bank. If the rate of interest is $10%$ per annum, find the difference in amounts he would be paying after $1 \frac{1}{2}$ years if the interest is
(i) compounded annually.
(ii) compounded half yearly.

Text solutionVerified

Practice questions from similar books

Arif took a loan of Rs 80,000 from a bank. If the rate of interest is 10% per annum, find the difference in amounts he would be paying after 121​ years if the interest is(i) compounded annually.(ii) compounded half yearly.

Text solutionVerified

Practice questions from similar books

Arif took a loan of $R s 80, 000$ from a bank. If the rate of interest is $10%$ per annum, find the difference in amounts he would be paying after $1 \frac{1}{2}$ years if the interest is
(i) compounded annually.
(ii) compounded half yearly.