Question

Calculate the amount on compound interest on Rs.62,500 for one and half years at rate per annum compound and half yearly

Answer 1

Answer:

Given, Principal (P) = Rs. 62,500

Rate =8 % per annum or 4 % per half year

Number of years = 1

2

1

There will be 3 half years in 1

2

1

years.

We know,

A=P[1+

100

R

]

n

⇒A=62500[1+(

100

4

)

3

]

⇒A=62500×

25

26

×

25

26

×

25

26

⇒A=70304

compound interest =A−P

= Rs. 70304 - Rs. 62500

= Rs.7,804.