Question

Compute the compound interest on 10000 for 1½ years at 16% per annum compounded half yearly​

Answer 1

Answer:

Principal = P = ₹1000

Rate=R = 16% p.a

Time = 1 and half year = 3/2 year.

$compound \: interest = p( {(1 - \frac{r}{100} ) }^ \frac{3}{2} - 1) \\ \\ = 1000( {1 - \frac{16}{100} }^{ \frac{3}{2} } ) - 1) \\ \\ = 1000 {(( \frac{100}{16}) }^{ \frac{3}{2} } - 1) \\ \\ = 1000(( { \frac{10}{4}) }^{2 \times \frac{3}{2} } - 1) \\ \\ = 1000(( { \frac{10}{4}) }^{3} - 1) \\ \\ = 1000( \frac{1000}{64} - 1) \\ \\ = 1000( \frac{1000 - 64}{64} ) \\ \\ = 1000( \frac{936}{64} ) \\ \\ = rs \: 14625$

So, the Compound Interest is ₹14625