Question

calculate the ci on ₹8000 in 1 1/2 yrs at 10%compounded half yearly explain
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Answer 1

Answer:

Given that

P = ₹8,000

R = 10 % p.a.

T = 1 1/2 year = 3/2 years

Solution

When the interest is compounded half - yearly

A = P(1+R/200)^2n

= 8,000(1+10/200)^2 × 3/2

= 8,000(200+10/200)^3

= 8,000(210+200)^3

= 8,000(21/20)^3

= 8,000 × 9,261/8,000

= ₹9,261

C.I. = A - P

= ₹(9,261 - 8,000)

= ₹1,261