Question

Geeta borrowed Rs. 15,000 for 18 months at a certain rate of interest compounded semi-annually. If at the end of six months it amounted to Rs. 15,600; calculate :

(i) the rate of interest per annum.

(ii) the total amount of money that Geeta must pay at the end of 18 months in order to clear the account.

Answer 1

For 1^st half-year

P= Rs15,000; A= Rs15,600 and T= ½ year

Interest= Rs15,600 - Rs15,000= Rs600

Rate= %=%= 8% Ans.

For 2^nd half-year

P= Rs15,600; R=8% and T= ½ year

Interest= Rs= Rs624

Amount= Rs15,600 + Rs624= Rs16,224

For 3^rd half-year

P= Rs16,224; R=8% and T= ½ year

Interest= Rs= Rs648.96

Amount= Rs16,224+ Rs648.96= Rs16,872.96 Ans.