Question

Find the amount and the compound interest on Rs. 8000 for $1\frac{1}{2}$ years at $10\%$ per annum, compounded half-yearly.

Answer 1

Principal (P) = Rs. 8000
Rate (R) $=10\%p.a$ or $5\%$ half yearly.
Period (n) = $1\frac{1}{2}$ years or 3 half years
$\therefore$ Amount (A) = $P{(1+\frac{R}{100})}^n$
$=Rs.8000{(1+\frac{5}{100})}^3=Rs.8000{\left(\frac{21}{20}\right)}^3$
$=Rs.8000\times \frac{21}{20}\times \frac{21}{20}\times \frac{21}{20}=Rs.9261$
and C.I. = A - P
= Rs. 9261 - Rs. 8000 = Rs. 1261