Question

Naval borrowed Rs 84,000 from a nationalized bank for 1 1/2 years at the rate of 10% per annum. Compute the total compound interest payable by Naval after 1 1/2 year, if the interest is compound half yearly.

Answer 1

1 1/2 years = 3 half years

Principal Amount = Rs 84,000

Rate = 10% = 5% half yearly

Total amount = principal amount

∴ Compound Interest = Total Amount – Principal Amount

= 97,240.50 – 84,000

= Rs 13,240.50