Question

Abha purchased a house from Avas Parishad on credit. If the cost of the house is Rs$64000$ and the rate of interest is $5\%$ per annum compounded half-yearly, find the interest paid by Abha after one year and a half.

Answer 1

Given:

$P=$ Rs $64000$

$R=5\%$ p.a

$n=1.5$ years

When the interest is compounded half-yearly,

We have:

$A=P{(1+\frac{R}{200})}^{2n}$

$A=64000{(1+\frac{5}{200})}^3$

$A=64000{\left(1.025\right)}^3$

$\therefore A=$ Rs $68921$

Also, $CI=A–P=$ Rs $68921–$ Rs $64000=$ Rs $4921$

Thus, the required paid by Abha is $Rs.4921.$