Question

Mukesh borrowed Rs. $75000$ from a bank. If the rate of interest is $12\%$ per annum, find the amount(approx.) he would be paying after $1\frac{1}{2}$ years if the interest is
(i) compounded annually
(ii) compounded half-yearly

• A. (i) $Rs.88500$ (ii) $Rs.94080$
• B. (i) $Rs.88897$ (ii) $Rs.89326$
  
• C. (i) $Rs.94990$ (ii) $Rs.74680$
• D. (i) $Rs.74680$ (ii) $Rs.94990$
  

Answer 1

The correct option is B ((i) $Rs.88897$ (ii) $Rs.89326$)

Given that $P=Rs.75000$
$R=12\%$
$T=\frac{3}{2}$ years

To find the amount : (i) when compounded annually,

Since, $A=P{(1+\frac{R}{100})}^T$

$A=75000{(1+\frac{12}{100})}^{\frac{3}{2}}$
$=75000(\frac{112}{100}{)}^{1.5}$
$=75000\left(1.853\right)$

$A=Rs.88897.2$

(ii) when compounded half yearly,

$A=P{(1+\frac{R}{200})}^{2T}$

$A=75000{(1+\frac{12}{200})}^{2\times \frac{3}{2}}$
$=75000(1+\frac{6}{100}{)}^3$
$=75000(\frac{106}{100}{)}^3$
$=75000\left(1.191\right)$

$A=Rs.89326.2$