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

Given: Principal, $P=Rs.8,000$

Rate, $R=10\%$ p.a.

Time, $n=1\frac{1}{2}=1.5$ years

When compounded half-yearly, we have:

Amount, $A=P(1+\frac{R}{200}{)}^{2n}$

$=Rs8,000(1+\frac{10}{200}{)}^3$

$=Rs8,000(1.05{)}^3$

$=Rs.9,261$

Also, Compound Interest, $CI=A-P$

$=Rs9,261-Rs8,000$

$=Rs.1,261$