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

Explanation

Principal `(P)=Rs.57600`
Rate `(R)=12.5%` per annum `=25/2×2%=25/4%=12.5/2%` (half yearly)
Time `(T)=1.5` years`= (3/2)×2=3` half years
`A=P(1+R/100)^n=57600(1+12.5/(2xx100))^3
A=57600(212.5/200)^3`
`A=Rs.69089.06`
`therefore` The amount is `Rs.69089.06`.