Question

Find the amount and compound interest on ₹15000 for 1.5 years at 10% per annum compounded half yearly

Answer 1

Step-by-step explanation:

The interest is 10% per annum but interest is compounded half yearly so rate of interest =5%

As the interest is compounded half yearly, the number of years is taken as 2n instead of n as the number of times the interest will be paid is doubled (twice in one year)

Therefore

Rate=5%

N= 3yrs

P=15000

Amount = 15000(1+ [5/100])^3

= (15000 * 105 * 105 * 105)/100000

= 17364.375

Coumpound interest = 2364.375