Question

Find the amount and compound interest on Rs.50000 on 1`(1)/(2)` years at 8% p.a. compounded half-yearly.

Answer 1

Here P = Rs50000, t = 1`(1)/(2)` years, r = 8%
Since interest is compounded half-yearly, so
Now, Amount
= `"P"(1 + "r"/200)^(2"t")`

= `50000(1 + 8/200)^3`

= `50000(104/100)^3`
= 56243.20
Hence, Amount = Rs.56243.20
Also, C.I.
= A - P.
= Rs.56243.20 - Rs.50000
= Rs.6243.20.