Find the compound interest for the given principal, rate and time when compounded half-yearly a. P=10,000, R = 6% p.a., T = 18 months
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Answer: Given:-
Principal,P = Rs. 10000
Rate,r = 6 %
Time, n = 18 months
To find out:-
Find half yearly compound interest .
Solution:-
If the interest is payable half-yearly, then r we take r/2 and for n we taken 2n.
★ Rate,r = 6 % = 6/2 = 3 %
★ Time, n = 18 months = 1 ½ years = 3/2 × 2 =3 years
We know that,
A = P ( 1 + r/100 )^n
A = 10000 ( 1 + 3/100 )³
A = 10000 ( 100 + 3 / 100 )³
A = 10000 ( 103/100 )³
A = 10000 × 103/100 × 103/100 × 103/100
A = 1,092,727 / 100
A = 10,927.27
Now,
Compound interest = Amount - Principal
= 10,927.27 - 10,000
= 927.27
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