Question

Mishael borrowed Rs. $16000$ from a finance company at $10$% per annum. compounded half-yearly. What amount of money will charge his debt after $1\frac{1}{2}$ years?

• A. $17652$
• B. $18000$
• C. $19000$
• D. $18522$

Answer 1

The correct option is D $18522$

Principal amount $\left(P\right)=Rs.16000$

Rate of interest, $\left(R\right)=10\%$ per annum or $5\%$ per half year.

Time $\left(n\right)=1\frac{1}{2}=\frac{3}{2}$ years.

$\therefore A=P{(1+\frac{R}{100})}^{2n}$

$=16000{(1+\frac{5}{100})}^{2\times 3/2}$

$=16000\times {\left(\frac{105}{100}\right)}^3$

$=Rs.18522$