Question

Find the amount and the compound interest on $Rs,12,800$ for $1$ years at $7\frac{1}{2}\%$ per annum, compounded semi-annually.

Answer 1

$P=12,800Rs$

Period $=1$ year

$\therefore$ half yearly periods $=N=2$

Rate yearly periods $=\frac{15}{2}\%p.a$

$\therefore$ half yearly Interest $=\frac{1}{2}\times \frac{15}{2}=\frac{15}{4}\%$

$A=P{(1+\frac{R}{100})}^N$

$A=12800{(1+\frac{15}{4\times 100})}^2$

$=12800\times {\left(\frac{400+15}{400}\right)}^2$

$=12800\times \frac{415}{400}\times \frac{415}{400}$

$A=13778Rs$

$\to$ Compound Interest $=AP$

$=13778-12800$

$=978Rs$