Question

Calculate the compound interest on Rs.$200$ for $1.5$ years at $10\%$ per annum compounded semi annually.

Answer 1

Compound Interest $=Principal{\left(1+\frac{rate}{100}\right)}^{time}-Principal$

or

$C.I=P{\left(1+\frac{r}{100}\right)}^t-P$

Here Rate $=\frac{10}{2}=5$ ,$t=3$, because it is compounded semi annually.

Substituting the values in the above equation, we can get the answer as

Rs $31.25$ .

Hence, the required value is $31.25$ .