Question

Find the C.I. on Rs.15625 at 8 % p.a. for 1 and a half years COMPOUNDED ANNUALLY .

Answer 1

C.I.=P(1+r/100)^n-1
15625(1+8/100)^1.5-1
15625(108/100)^1.5-1
15625×1.08^1.5-1
15625×1.122-1
15625×0.122
1912.01
Compound interest will be Rs. 1912.01.