Question
Krishna lends ₹48000 to Neelam for a year at 25%
interest per annum, compounded half yearly. Find the interest that must be paid by Neelam.Solution
According to the question A = P (1 + (r/2)/100)2t = 48000(1 + 25/(2x100))2 = 48000(1 + 12.5/100)2 = 48000(1 + 125/1000)2 = 48000(1 + 1/8)2 = 48000(9/8)2 = (48000 x 81/64) = (750 x 81) A = Rs. 60750 Now, The interest must be paid by Neelam = Rs. (60750 - 48000) = Rs. 12750 The interest that must be paid by Neelam is Rs.12750
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