Question

Find the compound interest on ₹25000 for one and a half
years at 20 % p.a when
compounded half yearly.

Answer 1

Answer:

A=P(1+r)

t

Here,

A= Final Amount

P= Principal

r= Rate of interest

t= Time (years)

Given that amount is compounded half yearly,

1.5 years would include 3 cycles.

t=3

P=25000

r=

2

20%

=0.1 (∵r=20%p.a. so r = 10% half yearly)

∴A=25000(1.1)

3

= Rs. 33275