Question

Find the compound interest on Rs.$24,000$ compounded half-yearly for $1\frac{1}{2}$ years at the rate of $10$% per annum.

Answer 1

Interest compounded half yearly

$⟹r=\left(10\%\right)/2=5\%$ per interest period.

No.of interest period $\left(n\right)=2\left(3/2\right)=3P=Rs.2400$

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

$CI=24000\left[\right(1+\frac{10}{100}{)}^3-1]=3783$

Hence, the compound interest$=Rs.3,783$