Question

Find the amount and C.I on Rs $24000$ compound semi-annually for $1\frac{1}{2}$ years at the rate of $10\%$ p.a.

Answer 1

$P=24000Rs$

$n=3$ because due to semi-annually $3\times \frac{1}{2}$ months are there

$r=10\%$ but for $\frac{1}{2}$ years $r=\frac{10}{2}=5\%$.

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

$=24000(1+0.05{)}^3$

$=24000\times 1.05\times 1.05\times 1.05$

Amount $=27783$

CI$=27783-24000$

CI$=3783$.