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12. Prashant borrowed ₹ $35,000$ at $12$% p.a. compounded semi-annually. Find the amount he needs to pay back at the end of $1½$ years.
12. Prashant borrowed ₹ $35,000$ at $12$% p.a. compounded semi-annually. Find the amount he needs to pay back at the end of $1½$ years.
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12. Prashant borrowed ₹ $35,000$ at $12$% p.a. compounded semi-annually. Find the amount he needs to pay back at the end of $1½$ years.

Solution:-

Given

Prashant borrowed ₹ $35,000$ at $12$% p.a.

p = ₹ $35,000$, t = years = $1½$ = $1.5$ years, r = $12$% p.a.

Amount = \[P{{\left( 1\text{ }+\text{ }r/100 \right)}^{2t}}\]

Amount = \[35,000\text{ }{{\left( 1\text{ }+\text{ }\left( 12/200 \right) \right)}^{3}}\]

Amount = ₹ $41,685.56$

Hence, Prashant has to pay back ₹ $41,685.56$ at the end $1½$ of years.

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