Question

Naresh borrowed Rs. $5,00,000$ at $10$% p.a. compounded half-yearly.
the interest he paid was approx $1,65,500$ find for how much time he borrowed this amount ?

• A. $2$ Years
• B. $2\frac{1}{2}$ Years
• C. $3$ Years
• D. $3\frac{1}{2}$

Answer 1

Answer: (C)

$3$ Years

Interest for $1$st year

$=500000\times \frac{10}{100}\times 1$

$=50000$

Amount after $1$st year$=500000+$$50000$

=Rs$550000$

Interest for $2$nd year$=550000\times \frac{10}{100}\times 1$

$=55000$

Amount after $2$nd year$=550000+$$55000$

$=605000$

Interest for $3$rd year$=605000\times \frac{10}{100}\times 1$

=Rs$60500$

Amount after $3$rd year$=605000+$$60500$

$=665500$

$\therefore$Compound Interest$=665500-$$500000$

$=165500$

$\simeq$$Rs.165000$(Aprrox.)

$\therefore$Time required$=3$years.