Question

Compute the amount for 65.536 for 18 months at 12.5% p.a., the interest being
compounded semi-annually.​

Answer 1

Answer:

93.312.

interest amount = 93.312-65.536 =27.77

Step-by-step explanation:

Amount = P*(1+r)^n

where P is the principal amount, r is the rate of interest and n is the times of compound.

interest is calculated for 18 months compounded semi-anually(once in 6 months) Hence n=18/6 =3

Therefore the amount becomes 65.536*(1+0.125)^3

=65.536*(1.125)³

=93.312