Ashima took a loan of Rs. 1,00,000 at 12%

p.a., compounded half yearly. She paid Rs.1,12,360.

If is equal to 1.1236 , then the period for which she took the loan is:

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2 years

1 year

6 months

11.2 years

answer is B.

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Detailed Solution

Concept- Given that the interest is compounded every six months in this scenario, the answer is not obvious. Because many students make this mistake, caution must be taken with this point. The interest rate is 12 %, although it is reviewed every six months. Therefore, we must divide it by half, or 6 %, to arrive at the final result.
Assuming a principal (P) of Rs. 100,000
Interest rate (R%) = 12 % ( Compound half - yearly )
Let me represent the time frame.
Total paid: Rs. 112360
We are aware that the formula is when an amount is compounded every six months.
Question Image

Comparing the two equations above, we obtain 2n=2
Comparing the two equations above, we obtain 2n=2n
As a result, the period is one year.
Hence, the correct answer is option 2.

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