Question

What will be compound interest on $Rs40,000$ at $16$ per annum for $1.5$ years if the interest is compounded half-yearly?

Answer 1

$P=Rs40,000$

$R=16$

$t=1.5yr$

Since we know that

$A=P(1+\frac{R}{200}{)}^{2}x$

$=40000(1+\frac{16}{200}{)}^3$

$\Rightarrow 40000(\frac{216}{200}{)}^3=40000\times \frac{10,077,696}{8000000}$

$A\Rightarrow Rs50,388.78$

Now, C.I = A-P

$=Rs50,388.48-Rs40,000$

$=Rs10,388.48$