Question

Find the amount that Dravid would receive if he invests Rs. $8,192$ for $18$ months at $12\frac{1}{2}$% per annum, the interest being compounded half-yearly.

Answer 1

Interest compounded half yearly

$⟹r=\left(\right(25/2\left)\%\right)/2=\left(25/4\right)\%$ per interest period.

No.of interest period $\left(n\right)=2\left(18/12\right)=3P=Rs.8,192$

$CI=P\left[\right(1+\frac{r}{100}{)}^n-1]$

$CI=8192\left[\right(1+\frac{\left(25/4\right)}{100}{)}^3-1]=1034$

Hence, the compound interest$=Rs.1,034$