Question

Arif took a loan of Rs 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. Rs. 88,000
• B. Rs. 98,760
• C. Rs. 92,400
• D. Rs. 96750

Answer 1

The correct option is

C

Rs. 92,400

Here ,

Principal (P) = Rs 80,000,

Time (n) =1 Years ,

Rate of interest (R) = 10%
Amount for 1 year (A) = $P{(1+\frac{R}{100})}^n=80000{(1+\frac{10}{100})}^1=80000{\left(\frac{11}{10}\right)}^1$
= Rs 88,000
Interest for $\frac{1}{2}year=\frac{88000\times 10\times 1}{100\times 2}=Rs.4,400$
Total amount = Rs 88,000 + Rs 4,400 = Rs 92,400