Question

Find the compound in interest and amount on $Rs.35000$ for $1\frac{1}{2}$ years compound semi-annually at the rate of $12\%$ p.a

Answer 1

We know that, $A=P(1+\frac{R}{100}{)}^n$

$P=Rs.35000,T=1\frac{1}{2}$years, $R=12\%$ p.a

Since, compound interest is compounded semi annually, therefore,

$\Rightarrow n=\frac{3}{2}\times 2=3$ and $R=\frac{12\%}{2}=6\%$

$\therefore A=35000(1+\frac{6}{100}{)}^3$

$=35000(\frac{100+6}{100}{)}^3$

$=35000(\frac{106}{100}{)}^3$

$=35000(\frac{53}{50}{)}^3$

$\therefore A=Rs.41685.56$

$CI=41685.56-35000$

$CI=Rs.6685.56$

Hence amount is $Rs.41685.56$ and compound interest is $Rs.6685.56$.