Question

Find C.I on sum of 100000 for1×1/2 years at 8% per annum compounded half yearly

Answer 1

Given. P=100000
time(n)=1×(1\2)
=3\2


R=8%

Because compounded half yearly
so, we are doing
n =2×n , R=R\2
n=3 , R=4%

we know that


A=P(1+R\100)^n

=100000(1+4\100)^3
=100000(1+25)^3
=100000(26\25)^3
=100000(1.124864)
A =112486.4

Hence. c.I.=A-P
=112486.4-100000
=12486.4