Question

Ramaan borrowed Rs. $50,000$ at $20$% p.a. compounded half-yearly. What amount of money will discharge his debt after $1\frac{1}{2}$ years ?

• A. $62,550$
• B. $63,550$
• C. $64,550$
• D. $66,550$

Answer 1

The correct option is D $66,550$

$\Rightarrow$ Here, $P=Rs.50,000,R=20\%p.a.=10\%half-yearly$ and $T=1\frac{1}{2}years=3$

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

$\Rightarrow$ $A=50000\times (1+\frac{10}{100}{)}^3$

$\Rightarrow$ $A=50000\times (\frac{11}{10}{)}^3$

$\Rightarrow$ $A=50000\times \left(\frac{1331}{1000}\right)$

$\therefore$ $A=Rs.66,550$