Question

A man borrowed Rs. 16,000 for 3 years under the following terms :

20% simple interest for the first 2 years.

20% C.I. for the remaining one year on the amount due after 2 years, the interest being compounded half-yearly.

Find the total amount to be paid at the end of three years.

Answer 1

p=16000
t=3 years
rate =20%

$simpleinterest=\frac{p\times r\times t}{100}$

here time we will take is 2 years

$SI=\frac{16000\times 20\times 2}{100}$
= 6400
now the amount is 16000+6400= 22400

we will now move forward to the compound interest

according to the question

time = $\frac{1}{2}$ years or 0.5 years

the interest for 3 year's 1st half year

$interest=\frac{amount\times rate\times time}{100}$

$\frac{22400\times 20\times 0.5}{100}$
= 2240

now the amount for this year= 22400+ 2240

= 24640
Principal for 3rd year's 2nd half year= 24640

Interest for 2nd half year= $\frac{24640\times 20\times 0.5}{100}$

= Rs 2464

Amount for 3rd year = 24640+2464
= Rs 27104


T he amount for 3rd year is
Rs 27104