Question

Amit has brought a loan of Rs 12000 for $\frac{3}{2}$ years at 10 % compounded half -yearly. Calculate the amount required to pay off his loan.

• A. $13890$
• B. $13891.50$
• C. $1282$
• D. $200.75$

Answer 1

The correct option is B $13891.50$

$\Rightarrow$ Compound Interest(for half yearly) can be given as,

$C.I.=P(1+\frac{R}{2}{)}^{2n}$

Substituting values we get,

$A=12000{(1+\frac{5}{100})}^{2\times \frac{3}{2}}$

$A=12000{\left(\frac{100+5}{100}\right)}^3$

$A=12000{\left(\frac{105}{100}\right)}^3$

$A=12000\times (1.05{)}^3$

$A=12000\times \left(1.157625\right)$

$A=13891.50$