Question

Meena borrowed $Rs.50,000$ at $20\%$ per annum compounded half-yearly. What amount of money will discharge his debt after $1\frac{1}{2}$ years?

• A. $Rs.28,275$
• B. $Rs.33,275$
• C. $Rs.66,550$
• D. $Rs.56,275$

Answer 1

The correct option is C $Rs.66,550$

Given:-

$P=Rs.50,000$

$R=20\%$ per annum so, for half yearly $r=10\%.$

$T=1\frac{1}{2}$so, for half yearly $n=3$

We know,

$A=P{(1+\frac{r}{100})}^n$

$\Rightarrow$ $A=50000\times {(1+\frac{10}{100})}^3$

$\Rightarrow$ $A=50000\times {\left(\frac{11}{10}\right)}^3$

$\Rightarrow$ $A=50000\times \frac{1331}{1000}$

$\Rightarrow A=Rs.66,550$

So, the amount that will be discharged is equal to $Rs.66,550.$