Question

Calculate the compound interest on Rs. 4,000 in $1\frac{1}{2}$ years at 10% per annum compounded half-yearly.

Answer 1

Sum=Rs.4000

Time$=1\frac{1}{2}=\frac{3}{2}$Years

Rate of interest=10% compounded half-yearly

$A=P{(1+\frac{r}{2\times 100})}^{n\times 2}$

$\Rightarrow A=Rs.4000{(1+\frac{10}{2\times 100})}^{\frac{3}{2}\times 2}=Rs.4630.50$

$\Rightarrow A=4000{(1+\frac{1}{20})}^3$

$\Rightarrow A=4000\times \frac{21}{20}\times \frac{21}{20}\times \frac{21}{20}$

$\Rightarrow A=\frac{9261}{2}=Rs.4630.50$
$\therefore C.I.=A-P$
$=Rs.4630.50-Rs.4000=Rs.630.50$