Question

If interest is compounded half-yearly what will be the compound interest and amount on ₹8000 at the rate of 10% compound interest per annum for 1$\frac{1}{2}$ years?

Answer 1

Given: P = ₹8000, R = 10% per annum, n = 1 ½ years = 1.5 years, CI = ?, A = ?
A = P(1 + (R/2×100))${}^{2n}$
A = 8000×(1 + 10/200)${}^3$
A = 8000×${1.05}^3$
A = 8000×1.157 (We know that, ${1.05}^3=1.157$)
A = 9256
CI = A − P = 9256 − 8000 = 1256
Answer: Amount = ₹9256, Compound interest = ₹1256