Question

6. What will be the compound interest on
5,000, if it is compounded half-yearly for
1 year 6 months at 8% per annum?​

Answer 1

Step-by-step explanation:

p=5,000

r=8%

n=1.5y

compounded=half yearly

solution:

c.i.=P[1+r/100]^n×2

=5,000[1+8/100]^1.5×2

=5000[27/25]^3

=5000×{27/25}×{27/25}×{27/25}

={8×27×27×27}/25

=6298.6

therefore, ci=6298.6