Question

Find the amount and the compound interest on Rs 8000 for \[1\frac{1}{2}\] years at 10% per annum, compounded half-yearly.

Answer 1

Given: 
P = Rs 8, 000
R = 10 % p . a . 
n = 1 . 5 years
When compounded half - yearly, we have: 
\[A = P \left( 1 + \frac{R}{200} \right)^{2n} \]
\[ =\text{ Rs }8, 000 \left( 1 + \frac{10}{200} \right)^3 \]
\[ =\text{ Rs }8, 000 \left( 1 . 05 \right)^3 \]
 = Rs 9, 261
Also, 
CI = A - P
 = Rs 9, 261 - Rs 8, 000
 = Rs 1, 261