Question

Mohd, Aslam purchase a house from Avas Vikas Parishad on credit. If the cost of the house is $Rs.125000$ and Prishad charged interest at $12$% per annum compound half-yearly, find the interest paid by Aslam after a year and half.

Answer 1

Formula for the amount $A$ on the Principle $P$ Charged at $r$ % per annum for n

year is given by

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

$P=Rs.125000R=12$% $t=1\frac{1}{2}year\Rightarrow r=6$% per year

A=125000 $(1+\frac{6}{100}{)}^3$

$125000(1+\frac{3}{50}{)}^3=125000\times (\frac{53}{50}{)}^3$

$A=Rs.148877$

$I=A-P=148877-125000=Rs.23877$