Question

Compute the compound interest on Rs.12000 for $1\frac{1}{2}$ years at the rate of 12% per annum when the interest is compounded semi-annually.

Answer 1

$P=Rs.12000,T=1\frac{1}{2}years=\frac{3}{2}yrs$

R = 12 % , n=2

$A=P{[1+\frac{R}{n}]}^{nt}$

$=12000{[1+\frac{12}{2}]}^{2\times \frac{3}{2}}$

$=12000\times {\left[7\right]}^3$

$=12000\times 49\times 7$

A = Rs. 4116000

Compound Interest = Amount - Principal

= Rs.4116000-12000

=Rs.4104000