Q. 84.8( 4 Votes )

Out of the four options, only one is correct. Write the correct answer.

Ashima took a loan of Rs 1,00,000 at 12% p.a. compounded half yearly. She paid Rs 1,12,360. If (1.06)2 is equal to 1.1236, then the period for which she took the loan is
A. 2 years

B. 1 year

C. 6 months

D. years

Answer :

Given principal (P) = ₹100000

Rate of interest (R%) = 12% per annum compounded half – yearly

Let m be the time period.

Amount paid = ₹112360

We know that,

When amount is interested compounded half – yearly

i.e A = P, where n = time period

112360 = 100000

On comparing both sides, we get

2m = 2

m = 1

So, the time period is 1 yr.

Hence, option (b) is correct.

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