section-B
Roshan borrowed Rs 5,00,000 from a commercial bank at the rate of 10% p.a.
compounded annually for 2 years. After one year, the bank changed its policy to
pay the
interest compounded half-yearly at the same rate.
(i) How much interest should he pay in the first year?
(ii) How much interest should he pay in the second year?
(iii) How much less interest would he pay if the bank had not changed the
policy?