(i) P = Rs 80,000 R = 10% per annum
n = 1 1/2 years
The amount for 1 year and 6 months can be calculated by first calculating the amount for 1 year using the compound interest formula, and then calculating the simple interest for 6 months on the amount obtained at the end of 1 year. Firstly, the amount for 1 year has to be calculated.
By taking Rs 88,000 as principal, the SI for the next 1/2 years will be calculated.
Interest for the first year = Rs 88000 − Rs 80000 = Rs 8,000
And interest for the next 1/2 year = Rs 4400
Total C.I. = Rs 8000 + Rs 4,400 = Rs 1,2400
A = P + C.I. = Rs (80000 + 12400) = Rs 92,400
(ii) The interest is compounded half yearly. Rate = 10% per annum = 5% per half year
There will be three half years in 1 1/2 years.
Difference between the amounts = Rs 92,610 − Rs 92,400 = Rs 210