Question

Find the amount and the compound interest on Rs 31250 for $1\frac{1}{2}yearsat8\%$ per annum, compounded half-yearly .

Answer 1

$\text{Principal (P) = Rs. 31250}\text{Rate (R)}=8\%p.a.or4\%\text{half yearly}\text{Period (n)}=1\frac{1}{2}\text{years or 3 half years}\therefore \text{Amount (A) = P}{(1+\frac{R}{100})}^n=Rs.31250{(1+\frac{4}{100})}^3=Rs.31250{\left(\frac{26}{25}\right)}^3=Rs.31250\times \frac{26}{25}\times \frac{26}{25}\times \frac{26}{25}=Rs.35152\therefore \text{C.I. = A - P = Rs. 35152 - 31250}=Rs.3902$