Question

Abha purchased a house from Avas Parishad on credit. If the cost of the house is Rs. 64000 and the rate of interest is 5% per annum compounded half-yearly, find the interest paid by Abha after one year and a half.

Answer 1

Given, 

Principal = Rs.64000 

Rate of interest = 5% per annum \(=\frac{5}{2}\text%\) half yearly

Time \({1}\frac{1}{2}\) years

\(=\frac{2}{2}\times{2}\) = 3 half years

Hence, 

Compound interest \(={P}[({1}+\frac{R}{100})^T-{1}]\)

\(={64000}[({1}+\frac{5}{2\times100})^3-{1}]\)

\(={64000}[(\frac{41}{40})^3-{1}]\)

\(={64000}\times\frac{4921}{64000}\) Rs. 4921

So, interest paid by Abha = Rs.4921