Question

Find the ci rs 16000,at 20%compounded interest half year, for 18 months

Answer 1

Given Principal Amount= P= 16000

Rates of interest Per annum= i =20%

Time= n =18 months = 1 1/2 years..
compounded half yearly so 1 1/2 ×2 = 3 ..n=3

Compound Interest = P[ (1+i)^n - 1]

=16000[ (1+20/100)^3 - 1]

=16000[(1 + 0.2)^3 -1]

=16000[ (1.2)^3 - 1]

=16000[1.728 - 1]

=16000[0.728]

=11648 is the Compound Interest...

Then compounded Amount = Principal Amount + Compound Interest 

=16000 + 11648 =27648 is the Compounded amount