Question

Find the amount and the compound interest on ₹ 50000 for 1 ½ years at 8% per annum with the interest being compounded semi-annually

Answer 1

It is given that

Principal (P) = ₹ 50000

Rate of interest (r) = 8% p.a. = 4% semi-annually

Period (n) = 1 ½ years = 3 semi-annually

We know that

Amount = P (1 + r/100)^n

Substituting the values

= 50000 (1 + 4/100)³

By further calculation

= 50000 (26/25)³

= 50000 × 26/25 × 26/25 × 26/25

= ₹ 56243.20

Here

Compound Interest = A – P

Substituting the values

= 56243.20 – 50000

${ \orange{ \bf{₹ 6243.20}}}$

${\fcolorbox{blue}{black}{\orange{\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\: DecentMortal\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:\:}}}$