find find the amount and the compound interest on rupees 8000 at 10% per annum for one and half years if the interest is compounded semi annually
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Answer:
Rs.9261
Step-by-step explanation:
P = initial amount = Rs.8000
R = rate of interest per cent per year = 10
T = number of years = 1.5
A = final amount at the end of T years
m = compounding interval
As the interest is compounded semi-annually, there are two periods of compounding in a year.
Now,
A = P(1 + R/(100*m))^Tm
where m is the number of intervals in a year over which interest is compounded. In our case, m = 2
Hence,
A = 8000*(1 + 10/(100*2))^(1.5*2)
A = 8000*(1+0.05)^3
A = 8000*(1.05)^3
A = 9261
Final amount at the end of one and a half years = Rs.9261
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