Question
Kritika lends ₹64000 to Nidhi for a year at 25%
interest per annum, compounded half yearly. Find the interest that must be paid by Nidhi.Solution
According to the question A = P (1 + (r/2)/100)2t = 64000(1 + 25/(2x100))2 = 64000(1 + 12.5/100)2 = 64000(1 + 125/1000)2 = 64000(1 + 1/8)2 = 64000(9/8)2 = (64000 x 81/64) = (1000 x 81) A = Rs. 81000 Now, The interest must be paid by Nidhi = Rs. (81000 - 64000) = Rs. 17000 .: The interest that must be paid by Nidhi is Rs. 17000
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