Question

A person took a loan of Rs 50,000. If the rate of the compound interest is 1 paisa per rupee per month, (What is the interest of Re 1 for 1 year?) (In how many years will the compound interest be Rs 62720?) If the rate of interest was doubled then what would be the semi-annual compound interest of two years ?[​

Answer 1

GIVEN:

Interest = 1 paisa per rupee per month

FORMULA USED:

Rate% = Interest/Sum × 100

CALCULATION:

Total interest in a year = 1 × 12 = 12 paisa

Total Sum = 1rupee = 100 paisa

Rate% = Interest/Sum × 100

⇒ 12/100 × 100 = 12%

∴ Rate% per annum is 12%