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Question -

Arif took a loan of ₹ 80,000 from a bank. If the rate of interest is 10% per annum, find the difference in amounts he would be paying after
1(1/2) years if the interest is
(i) compounded annually.
(ii) compounded half yearly.



Answer -

(i) Given: P = ₹ 80,000
R = 10% p.a.
n = 1(1/2) years
Since the interest is compounded annually
 
Difference between the amounts = ₹ 92,610 – ₹ 92,400 = ₹ 210

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