Question

5. Sangeeta lent $ 40,960 to Amar to purchase a shop at 12.5% per annum. If the interest is compounded
semi-annually, find the interest paid by Amar after 1½​

Answer 1

51840

Compound Interest = P (1+R/100)^n

n = time

40960 (1+12.5/100)^2

40960 (1+125/1000)^2

40960 (1000/1000+125/1000)^2

40960 (1125/1000)^2

40960 * 1125/1000 * 1125/1000

51840