Bella borrowed rupees 25000 from a finance company to start a boutique at 20% per annum compounded half yearly what amount of money will clear her debt after 3/2 years
25000(1+.2/2)^(2* 3/2) = 33275
To find out the amount of money Bella will have to pay to clear her debt after 3/2 years, we can use the compound interest formula:
A = P(1 + r/n)^(nt)
Where:
A = the final amount to be paid
P = the principal amount (initial loan amount)
r = the rate of interest per period (in decimal form)
n = the number of compounding periods per year
t = the total number of years
In this case, the principal amount (P) is Rs. 25,000, the rate of interest (r) is 20% per annum (or 0.20 in decimal form), and the compounding periods per year (n) is 2 (since it is compounded half yearly). The total number of years (t) is 3/2.
Plugging in the values into the formula, we get:
A = 25000(1 + 0.20/2)^(2 * (3/2))
Simplifying further:
A = 25000(1.10)^(3)
Using a calculator or doing the calculations step-by-step, we find:
A = 25000(1.331)
A = 33275
Therefore, Bella will have to pay Rs. 33,275 to clear her debt after 3/2 years.