What Amount of Money will Discharge?

Raghu borrowed Rs.25,000 at 20% per annum compounded Half-yearly. What amount of money will discharge his debt after one and a half years:

  1. Rs. 28,275
  2. Rs. 36,275
  3. Rs. 33,275
  4. None of these
Nitin Baudh Learner Asked on 31st July 2015 in Maths.
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  • 1 Answer(s)

    Answer: (3) Rs.33, 275
    Explanation:-
    Given – 
    Principal = Rs.25,000,  Rate = 20 %,  Time = 3/2 years.  Amount = ?
    Formula-
    Compound Interest = P [(1 + R/100)t – 1]
    Where, P = principal, R = rate, t = time.                             (If compounded half yearly then, rate become half and time is double)
    Then,  Amount = = 25000 (1 + 20/2 x 100)3                      
    = 25000 (1 + 1/10)3
    = 25000 (11/10)3
    = 25000 x 11 x 11 x 11/10 x 10 x 10
    = 25 x 1331
    = Rs.33, 275
    Hence, the answer is (3) Rs.33, 275.

    Anurag Mishra Professor Answered on 1st August 2015.
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