Swati borrowed ₹ 40960 from a bank to buy a piece of land. If the ba

1.	Swati borrowed ₹ 40960 from a bank to buy a piece of land. If the bank charges 12 ½ % per annum, compounded half yearly. What amount will she have to pay after 1 ½ years? Also, find the interest paid by her.
Answer» Given: Present value= ₹ 40960 Interest rate= 12 ½ % per annum Time=1 ½ = 3/2 years and compounded half yearly To find the amount we have the formula, Amount (A) = P (1+(R/100)²ⁿ Where P is present value, r is rate of interest, n is time in years. Now substituting the values in above formula we get, ∴ A = 40960 (1 + (25/4)/100)³ ⇒ A = 40960 (1+1/16)³ ⇒ A = 40960 (17/16)³ ⇒ A = 40960 × 4913/4096 ⇒ A = ₹ 49130 ∴ Compound interest = A – P = 49130 – 40960 = ₹ 8170

Swati borrowed ₹ 40960 from a bank to buy a piece of land. If the bank charges 12 ½ % per annum, compounded half yearly. What amount will she have to pay after 1 ½ years? Also, find the interest paid by her.

Answer»

Given: Present value= ₹ 40960

Interest rate= 12 ½ % per annum

Time=1 ½ = 3/2 years and compounded half yearly

To find the amount we have the formula,

Amount (A) = P (1+(R/100)²ⁿ

Where P is present value, r is rate of interest, n is time in years.

Now substituting the values in above formula we get,

∴ A = 40960 (1 + (25/4)/100)³

⇒ A = 40960 (1+1/16)³

⇒ A = 40960 (17/16)³

⇒ A = 40960 × 4913/4096

⇒ A = ₹ 49130

∴ Compound interest = A – P

= 49130 – 40960 = ₹ 8170