Kamal borrowed Rs. 57600 from LIC against her policy at 12% per annum to build a house. Find the amount that she pays to the LIC after 1years if the interest is calculated half-yearly.

Question

Kamal borrowed Rs. 57600 from LIC against her policy at 12 % per annum to build a house. Find the amount that she pays to the LIC after 1 years if the interest is calculated half-yearly.

Philoid · Accepted Answer

Given,

Principal = Rs.57600

Rate = 12-% per annum =

Time = 1 years =

Hence,

Compound interest =

= 57600

So,

Amount that Kamal pays to LIC after 1- years = Rs.(57600 + 11489.06) = Rs.69089.06