Question

Raghu borrowed Rs. $25000$ at $20\%$ p.a. compounded half yearly. What amount of money will clear his debt after $1\frac{1}{2}$ years?

• A. Rs. $28275$
• B. Rs. $36275$
• C. Rs. $33275$
• D. Rs. $38275$

Answer 1

Answer: (C)

Rs. $33275$

$A=P(1+r{)}^t$

Here,

$A=$ Final Amount

$P=$ Principal

$r=$ Rate of interest

$t=$ Time (years)

Given that amount is compounded half yearly,

$1.5$ years would include $3$ cycles.

$t=3$

$P=25000$

$r=\frac{20\%}{2}=0.1$ $(\because r=20\%p.a.$ so r = 10$\%$ half yearly$)$

$\therefore A=25000(1.1{)}^3=$ Rs. $33275$