Q. 1043.7( 3 Votes )

Rahim borrowed Rs 10,24,000 from a bank for one year. If the bank charges interest of 5% per annum, compounded half-yearly, what amount will he have to pay after the given time period. Also, find the interest paid by him.

Answer :

Given, Amount borrowed by Rahim (P) = 1024000 with a


time period (T) = 1 yr.


Also, Rate of interest (R) = 5% per annum compounded


half-yearly.


Let Amount = A


Now, for interest compounded half-yearly


A =


Since, In half-yearly and T = 2T


A =


=


=


=


= 640 x 41 x 41


= Rs.1075840


Now, we know Compund interest,CI = Amount-Principle


CI = 1075840-1024000


= RS. 51840


Hence, interest paid by him is RS.51840


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