Answer:
6,483.75
Step-by-step explanation:
Calculation to find the interest paid by B after 3/2 year
First step is to calculate the Compound interest amountUsing this formula
Interest paid= P(1 + r/100)^Time
Where,
P represent principal=32,500
r represent Rate of interest = 12.5%/2 = 6.25%
T represent Time=3/2 years
Let plug in the formula
Compound interest amount= 32,500(1 + 6.25/100)^2*3/2
Compound interest amount= 32,500([1+.0625)^3
Compound interest amount= 32,500(1.0625)^3
Compound interest amount= 32,500 *1.1995
Compound interest amount= 38,983.75
Now let calculate the Interest paid by B
Interest paid by B = 38,983.75 - 32,500
Interest paid by B = 6,483.75
Therefore the interest paid by B after 3/2 year will be 6,483.75
