Multiple choice

Mukesh borrowed Rs. $75000$ from a bank. If the rate of interest is $12\%$ per annum, find the amount(approx.) he would be paying after $1 \dfrac{1}{2}$ years if the interest is (i) compounded annually (ii) compounded half-yearly.

  1. (i) $Rs.88500$ (ii) $Rs.94080$
  2. (i) $Rs.88897$ (ii) $Rs.89326$
  3. (i) $Rs.94990$ (ii) $Rs.74680$
  4. (i) $Rs.74680$ (ii) $Rs.94990$
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B Correct answer
Explanation

For (i) compounded annually: A = 75000 * (1 + 0.12)^1.5. For (ii) compounded half-yearly: A = 75000 * (1 + 0.06)^3. Calculating these gives approximately 88897 and 89326 respectively.

AI explanation

For annual compounding over one and a half years using the mixed period method, the amount is 75000 multiplied by (112/100) multiplied by (106/100) half, which equals approximately Rs. 88897. For half-yearly compounding, the formula uses a rate of 6% over three periods, so the amount is 75000 multiplied by (106/100) cubed, which calculates to approximately Rs. 89326. These results match the values given in the second option.

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