Question:
Ashima took a loan of Rs 1,00,000 at 12% p.a. compounded half-yearly. She paid Rs.1,12,360. If (1.06)2 is equal to 1.1236, then the period for which she took the
loan is:
(a) 2 years
(b) 1 year
(c) 6 months
(d) 1(1/2) years
Solution:
(b) 1 year
Explanation: P = Rs.100000, R = 12% per annum compounded half-yearly.
Amount = Rs.112360
Since we know,
A = P (1+R/100)T
112360 = 100000(1+12/100)T
112360/100000 = (1+12/100)T
(1.1236)1 = (1.12) T
If we compare the base terms, 1.1236 is approximately equal to 1.12
Hence, T = 1 year.
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.