Question

Find the amount and compound interest on Rs. 20,000 for 1 1/2 years at 20% per  annum compounded half yearly.

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Answer 1

$\sf \large{\underline{Solution-} }$

Here it given that,

⟹ Principal = Rs. 20,000

⟹ Rate of interest = 20 %

${\sf \implies Time =\tt \small 1 \dfrac{1}{2} = \dfrac{3}{2} }$

• We have to find the amount and compound interest.

➢ Here, a situation of 'compounded half yearly' is given. So, according to that the formula will be :

$\tt: \implies \boxed{ \tt P \left[ 1 + \dfrac{ \frac{R}{2} }{100} \right]^{n \times 2 } }$

Here,

• P stands for principal
• n stands for time
• R stands for rate of interest

$\tt\implies 20000 \left[ 1 + \dfrac{ \frac{20}{2} }{100} \right]^{\frac{3}{2} \times 2 }$

$\tt\implies 20000 \left[1 + \dfrac{ 10 }{100} \right]^{3}$

$\tt\implies 20000 \left[ \dfrac{ 10 + 1 }{10} \right]^{3}$

$\tt\implies 20000 \left[ \dfrac{ 11 }{10} \right]^{3}$

$\tt\implies 20000 \times \dfrac{1331}{1000}$

$\tt\implies Rs. \: 26620$

Hence,

• Amount = Rs. 26620

Now,

Compound interest : Amount - Principal

⟹ 26620 - 20000 = Rs. 6620

Hence,

• Compound interest = Rs. 6620

Answer 2

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