Question

Find the compound interest on $\text{Rs}2,50,000$ at the rate of $8\%$ per annum for $1\frac{1}{2}$ yrs when interest is compounded half-yearly.

Answer 1

$Rate=8\%$

$T=\frac{3}{2}years$

$\text{Principal}=\text{Rs.}1000$

$\therefore \text{Rate}=\frac{8}{2}=4\%$

$\text{Time}=\frac{3}{2}\times 2years=3years$

$\text{C.I.}=P{\left[1+\frac{R}{100}\right]}^t$

$\text{C.I.}=1000{\left[1+\frac{4}{100}\right]}^3$

$=1000\times \frac{104\times 104\times 104}{100\times 100\times 100}$

$=\text{Rs.}1124.864$