Question

Rs 62,500 for $1\frac{1}{2}$ years at 8% per annum compounded half yearly, find the interest.

Answer 1

$A=P{(1+\frac{R}{100})}^t$
P$=62500$, R$=4$, t$=3$
Rate has been halved because interest is compounded half yearly and for the same reason the time has been doubled
So,
$A=62500{(1+\frac{4}{100})}^3$
$=62500{(1+\frac{1}{25})}^3$
$=62500{\left(\frac{26}{25}\right)}^3$
$=70304$
Amount $=$Rs. $70,304$
Compound Interest $=$Rs. $(70304-62500)$
$=$Rs. $7,804$