Question

Find the compound interest on Rs 1000 at the rate of 8% per annum for \[1\frac{1}{2}\] years when interest is compounded half-yearly.

Answer 1

Given: 
P = Rs 1, 000
R = 8 % p . a . 
n = 1 . 5 years
We know that: 
\[A = P \left( 1 + \frac{R}{200} \right)^{2n} \]
\[ = 1, 000 \left( 1 + \frac{8}{200} \right)^3 \]
\[ = 1, 000 \left( 1 . 04 \right)^3 \]
= Rs 1, 124 . 86
Now, 
CI = A - P
 = Rs 1, 124 . 86 - Rs 1, 000
 = Rs 124 . 86