Question

What is the compound interests on Rs. $5000$ for $\frac{3}{2}$ years at $4\%$ per annum compounded yearly?

Answer 1

$P=5000$
$rate=4\%$
$time=\frac{3}{2}years=1\frac{1}{2}years=1year+1halfyear$
$A=P\left(1+\frac{r}{100}\right)\left(1+\frac{\frac{r}{2}}{100}\right)$
$=5000\left(1+\frac{4}{100}\right)\left(1+\frac{\frac{4}{2}}{100}\right)$
$=5000\times 1.04\times 1.02$
$=5304$
$\therefore C.I=A-P=5304-5000=Rs304$