Arif took a loan

(i) Interest is compounded annually 
Here,
Principal (P) = Rs. 80,000, Time, n =  years, Rate of interest (R) = 10%

We can break 1 and half year as 1 + 1/2.
So first we will calculate the Amount for 1 year

We know that the Amount is given by the formula

Now we have to calculate Amount for the left 1/2 year. For that we will use Rs. 88000 as the Principal and calculate simple Interest on this at the rate of 10%

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

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

If the Interest is compounded Half Yearly then

Time, n = 3/2 year = 3 year (compounded half yearly)

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

Amount is given by the formula

Amount for 3 years at the rate of 5% interest will be

= Rs. 92,610

Amount when Compounded half yearly = Rs. 92610

Difference in amounts

= Rs. 92,610 – Rs. 92,400 = Rs. 210