Question

Calculate the compound interest on Rs.15,625 for $1\frac{1}{2}$ years at 8% per annum,compounded half yearly.

Answer 1

Solution :

Given Principal ( P ) = Rs 15625

Rate of interest ( r ) = 8% per annum

= 4% per half yearly

time ( T ) = 1½ years

Number of times Interest paid ( n ) = 3

Now ,

Amount ( A ) = P( 1 + r/100 )ⁿ

= 15625( 1 + 4/100 )³

= 15625( 1 + 1/25 )³

= 15625 × ( 26/25 )³

= (15625 × 26 × 26 × 26)/(25 × 25 × 25)

= 274625000/15625

= Rs 17576

Therefore ,

Compound interest = A - P

= Rs 17576 - Rs 15625

= Rs 1951

••••

Answer 2

Answer:

Rs 1951

Step-by-step explanation:

Principal = Rs 15625

Find the half yearly rate:

Rate =8% p.a compounded half yearly

Rate = 8 ÷ 2 = 4% half yearly

Find the number of period:

Period = 1 1/2 year = 3/2 year compounded half yearly

Period = 3/2 ÷ 2 = 3 periods

Find the compound interest:

Compound Interest = P(1 + r/100)ⁿ - P

Compound Interest = 15625(1 + 0.4/100)³ - 15625

Compound Interest = Rs 1951

Answer: Rs 1951