Question

calculate the compound interest on Rs.200 for 1.5 years at 10% per annum compounded semiannually

Answer 1

Compound Interest =Principal(1+Rate/100)^Time -Principal =200(1+10/2(100))^3-200=200(1+5/100)^3-200=200(1.05^3)-200=200(1.05^3-1)=200(1.05-1)(1.05^2+1+1.05)=200(0.05)(1.1025+1.05+1)=10(3.1525)
= ₹31.525~₹31.53 .

Answer 2

Dear Student,

◆ Answer -

CI = 31.525 Rs

● Explanation -

# Given -

Principal = Rs 200

Interest rate = 10% per annum

# Solution -

As the interest is compounded semiannually, we have to consider 3 cylcles with interest rate 10/2 = 5% per semiannum.

Compound interest is calculated by -

CI = P [(1+r)^t - 1]

CI = 200 [(1 + 5/100)^3 - 1]

CI = 200 × (1.05^3 - 1)

CI = 200 × (1.1576 - 1)

CI = 200 × 0.1576

CI = 31.525 Rs

Hence, compound interest over 1.5 years is 31.525 Rs.

Hope this helps you...