Question

Raghu borrowed Rs. $25,000$ at $20\%$ p.a. compounded half-yearly. What amount of money will discharge his debt after $1\frac{1}{2}$ years ?

• A. Rs. $28,275$
• B. Rs. $30,275$
• C. Rs. $33,275$
• D. Rs. $35,275$

Answer 1

Answer: (C)

Rs. $33,275$

We have,

$P=$ $\text{Rs.}25,000$

$R=20\%p.a.=\frac{20}{2}\%$ half - year

$T=1\frac{1}{2}$ years $=3$ half-years

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

$\Rightarrow$ $A=25,000\times {(1+\frac{20}{2\times 100})}^3$

$\Rightarrow$ $A=25,000\times {\left(\frac{11}{10}\right)}^3$

$\Rightarrow$ $A=25,000\times \frac{1331}{1000}$

$\Rightarrow A=$ $\text{Rs.}33,275$