Savitri borrowed 10000 rupees from a bank for a period of two years at a fixed interest rate of 10% per annum, compounded semi-annually, and paid back 5025 rupees at the end of first year. Then, the amount, in rupees, to be paid at the end of second year is ___
Savitri borrowed 10000 rupees from a bank for a period of two years at a fixed interest rate of 10% per annum, compounded semi-annually, and paid back 5025 rupees at the end of first year. Then, the amount, in rupees, to be paid at the end of second year is ___
Entered answer:
Solution
✅ Correct Answer: 6615
Compounded semi-annually means the rate per half-year , so the amount grows by factor each half-year.
Amount after year ( half-years):
rupees.
After paying , remaining balance rupees.
This grows for the next half-years:
rupees.
Amount to be paid at the end of year is rupees.

