Question

Calculate the amount and compound interest on $Rs.12,000$ for $\frac{3}{2}$ years at $4\%$ per annum compounded half yearly.

Answer 1

$P=Rs.12,000$

$R=4$% p.a

$T=\frac{3}{2}=1\frac{1}{2}$years

as compounded half yearly, $n=3,r=2$%

$Amount=P{(1+\frac{r}{100})}^n$

$=12000{(1+\frac{2}{100})}^3$

$=12000{(1+\frac{1}{50})}^3$

$=12000{\left(\frac{51}{50}\right)}^3$

$=12000\times \frac{132651}{125000}$

$\therefore Amount=Rs.12,734.49$

$C.I=A-P=12734.49-12000=Rs.734.49$