Question

Calculate the compound interest on rs 20000 for 1.5 years at the rate of 10% per annum compounded semi annually

Answer 1

Principal for the first year = Rs 3,000

Interest for the first year=Rs3,000 x 5 x 1100 = Rs 150

Amount at the end of the first year = Rs 3,000 + Rs 150 = Rs 3,150

Principle Interest for the second year=Rs 3,150 x 5 x 1100 = Rs 157.50

Amount at the end of the second year = Rs 3307.50

Compound interest=Rs 3,307.50 – 3,000 = Rs 307.50