Question

Arif took a loan of ₹80,000 from a bank. If the rate of interest is 10% per annum, find the amount he would be paying after $1\frac{1}{2}$ years if the interest is compounded annually.

• A. ₹88,000
• B. ₹98,760
• C. ₹92,400
• D. ₹96750

Answer 1

The correct option is C

₹92,400

Here , Principal (P) = ₹80,000,

Time (n) = 1 year ,

Rate of interest (R) = 10%
Amount for 1 year (A) = $P{(1+\frac{R}{100})}^n$

=$80000{(1+\frac{10}{100})}^1$

=$80000{\left(\frac{11}{10}\right)}^1$
= ₹88,000
Interest for $\frac{1}{2}year=\frac{88000\times 10\times 1}{100\times 2}=₹4,400$
Total amount = ₹88,000 + ₹4,400
= ₹92,400