Question

Find the amount and the compound interest on Rs. 20000 for $1\frac{1}{2}$ years at 10% per annum compounded half-yearly.

Answer 1

Principal(P)=Rs. 20000
Time(t) = $1\frac{1}{2}$ years= $\frac{3}{2}$ years
Rate(r) =10%
Amount= $P\times {(1+\frac{r}{2\times 100})}^{n\times 2}$
$=Rs.20000\times {(1+\frac{10}{200})}^{\frac{3}{2}\times 2}$
$=Rs.20000\times {\left(\frac{210}{200}\right)}^3$
$=Rs.20000\times \frac{21}{20}\times \frac{21}{20}\times \frac{21}{20}$
$=Rs.23152.50$
C.I.= Amount-Principal
= Rs. 23152.50-Rs. 20000=Rs. 3152.50