Question

Find the amount and the compound interest on Rs$8000$ for $112$ years at $10\%$ per annum, compounded half-yearly.

Answer 1

$P=$ Rs $8000$

$R=10\%$ p.a

$n=1.5$ years

When compounded half-yearly,

We have:

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

$A=8000{(1+\frac{10}{200})}^3$

$A=8000{\left(1.05\right)}^3$

$A=$ Rs $9261$

Also, $CI=A–P=$ Rs $9261–$ Rs $8000=$ Rs $1261$