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13. Amita wanted to start a business for which she needed $₹40,000$. She borrowed this from Dolly at $10$% p.a. compounded semi-annually. Find the extra amount that she needs to pay at the end of two years to clear her debt.
13. Amita wanted to start a business for which she needed $₹40,000$. She borrowed this from Dolly at $10$% p.a. compounded semi-annually. Find the extra amount that she needs to pay at the end of two years to clear her debt.
Class 10 | Compound Interest | Frank | ICSE | Maths
13. Amita wanted to start a business for which she needed $₹40,000$. She borrowed this from Dolly at $10$% p.a. compounded semi-annually. Find the extra amount that she needs to pay at the end of two years to clear her debt.

Solution:-

Given,

Amita needed = $₹40,000$

Where, p =$₹40,000$, t$=1$ $1/2$years $=1.5$years, r $=12%$

Amount = $p{{(1+r/100)}^{2t}}$

Amount = $35,000{{(1+(12/200))}^{3}}$

Amount = $₹48,620.25$

Hence, Amita has to pay $₹48,620.25$ at the end of two years to clear her debt.

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