Abha purchased a house from Avas Parishad on credit.

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.

Solution:

Given:

$\mathrm{P}=\mathrm{Rs} 64,000$

$\mathrm{R}=5 \%$ p. a.

$\mathrm{n}=1.5$ years

When the interest is compounded half - yearly, we have :

$\mathrm{A}=\mathrm{P}\left(1+\frac{\mathrm{R}}{200}\right)^{2 \mathrm{n}}$

$=$ Rs $64,000\left(1+\frac{5}{200}\right)^{3}$

$=$ Rs $64,000(1.025)^{3}$

$=$ Rs 68,921

Also,

$\mathrm{CI}=\mathrm{A}-\mathrm{P}$

$=$ Rs $68,921-$ Rs 64,000

$=$ Rs 4,921

Thus, the required interest is Rs 4,921 .

Leave a comment

Close

Click here to get exam-ready with eSaral

For making your preparation journey smoother of JEE, NEET and Class 8 to 10, grab our app now.

Download Now