ganesh took a loan of rs 25000 for 2 years at the rate of 5% per annum. Find the amount he has to repay i fthe interest if compoun

ganesh took a loan of rs 25000 for 2 years at the rate of 5% per annum. Find the amount he has to repay i fthe interest if compounded half yearly

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  1. Answer:

    (i) Here, Principal (P) = Rs. 80000, Time (n) = 1\ \frac{1}{2}1

    2

    1

    years, Rate of interest (R) = 10%

    Amount for 1 year (A) = P\left(1+\frac{R}{100}\right)^nP(1+

    100

    R

    )

    n

    = 80000\left(1+\frac{10}{100}\right)^180000(1+

    100

    10

    )

    1

    = 80000\left(1+\frac{1}{10}\right)^180000(1+

    10

    1

    )

    1

    = 80000\left(\frac{11}{10}\right)^180000(

    10

    11

    )

    1

    = Rs. 88,000

    Interest for \frac{1}{2}

    2

    1

    year = \frac{88000\times10\times1}{100\times2}

    100×2

    88000×10×1

    = Rs. 4,400

    Total amount = Rs. 88,000 + Rs. 4,400 = Rs. 92,400

    (ii) Here, Principal (P) = Rs. 80,000

    Time(n) = 1\ \frac{1}{2}1

    2

    1

    year = 3 years (compounded half yearly)

    Rate of interest (R) = 10% = 5% (compounded half yearly)

    Amount (A) = P\left(1+\frac{R}{100}\right)^nP(1+

    100

    R

    )

    n

    = 80000\left(1+\frac{5}{100}\right)^380000(1+

    100

    5

    )

    3

    = 80000\left(1+\frac{1}{20}\right)^380000(1+

    20

    1

    )

    3

    = 80000\left(\frac{21}{20}\right)^380000(

    20

    21

    )

    3

    = 80000\times\frac{21}{20}\times\frac{21}{20}\times\frac{21}{20}80000×

    20

    21

    ×

    20

    21

    ×

    20

    21

    = Rs. 92,610

    Difference in amounts

    = Rs. 92,610 – Rs. 92,400 = Rs. 210

    Step-by-step explanation:

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