Question

2. Find the compound interest for 6000 at 9% per annum for 18 months if the interest is
compounded semi-annually.​

Answer 1

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Answer 2

Compound interest  is about Rs 847 for Rs. 6000 at 9% per annum for 18 months if the interest is compounded semi annually

Given:

• P = Rs 6000
• r = 9 % per annum
• n = 18 months
• Compounded semi annually

To Find:

• Compound interest

Solution:

Interest = A - P    ( A = amount , P = Principal)

A = P (1 + r/100)ⁿ

CI = P (1 + r/100)ⁿ - P

Step 1:

Convert interest rate semi annually

r = 9/2  % half yearly

Step 2:

Convert times in block of 6 months

n = 18 month = 3 * 6 months

n = 3  half years

Step 3:

Substitute P = 6000 , n = 3 r = 9/2 and calculate CI

CI = P (1 + r/100)ⁿ - P

CI = 6000 ( 1 + 9/200)³ - 6000

CI = 846.99675

CI ≈ 847  Rs

Compound interest  is about Rs 847 for Rs. 6000 at 9% per annum for 18 months if the interest is compounded semi annually