Question

Asha borrowed Rs.24000 from a moneylender at a rate of 4% per annum compounded semi annually ,what payment will she have to make after 1year and 6 months to the moneylender to clear her debt ?

Answer 1

Rs. 25,468.8

Explanation:

A = p(1 + r/n)^nt

Where,

P = principal = RS. 24,000

r = interest rate = 4%= 0.04

n = number of periods = 2

t = years = 1 year and 6 months = 1.5 years

A = p(1 + r/n)^nt

= 24,000(1 + 0.04/2)^2*1.5

= 24,000(1 + 0.02)^3

= 24,000(1.02)^3

= 24,000( 1.0612)

= 25,468.8

A = Rs. 25,468.8