Find the compound interest on ₹12000 for one and half year at 8% per annum compounded semi annually.
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Find the amount and the compound interest on Rs. 120000 at 8% per annum for 1 year, compounded half-yearly.
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Given that, P=Rs. 120000, R=8% and T=1 year.
To find out: Amount and the compound interest after 1 year, if compounded half-yearly.
As interest compounded half-yearly,
R=
2
8%
=4%, and T=2×1=2
We know that, CI=P
⎣
⎢
⎡
(1+
100
R
)
T
−1
⎦
⎥
⎤
⇒CI=120000
⎣
⎢
⎡
(1+
100
4
)
2
−1
⎦
⎥
⎤
⇒CI=120000[(
100×100
104×104
)−1]
⇒CI=120000[(1.0816−1)]=120000(0.0816)=9792
∴ CI=Rs. 9792
Now, Amount = Principal + CI
∴ A=120000+9792=Rs. 129792
Hence, the amount and compound interest on Rs. 120000 at 8% per annum for 1 year, compounded half-yearly is Rs. 129792 and Rs. 9792 respectively.