Question

Jeevan borrowed ${}^{\prime }1528000$ from a bank for one year. If the bank charges interest of $5\%$ per annum compounded half yearly, then the amount after one year, Jeevan will pay is equal to

• A. ${}^{\prime }1655455$
• B. ${}^{\prime }1605355$
• C. ${}^{\prime }1715350$
• D. ${}^{\prime }1750000$

Answer 1

The correct option is B ${}^{\prime }1605355$

Suppose Amount $=A$
We know that, for interest compounded half yearly
the $R=R/2$
and $T=2T$
So, $A=P{(1+\frac{R}{200})}^{2T}$
$=1528000{(1+\frac{5}{200})}^2$
$=152800\left(\frac{41}{40}\right)\times \left(\frac{41}{40}\right)$
$A=16505355$