Question

find the compound interest on 250000 at the rate of 8% per annum for 1and 1/2 year when interest is compounded half yearly.

Answer 1

I hope its solution is helpful for you

Answer 2

Given :

Principal = 250000

Rate of interest = 8%

Time =$1\frac{1}{2}=\frac{3}{2} years$

To find :

find the compound interest

Solution:

Principal = 250000

Rate of interest = 8%

Time =$1\frac{1}{2}=\frac{3}{2} years$

No. of compounds per year = 2

Formula :$A = P (1+\frac{r}{n})^{nt}$

$A=250000(1+\frac{0.08}{2})^{\frac{3}{2} \times 2}$

A=281216

Compound interest = 281216-250000=31216

Hence the compound interest on 250000 at the rate of 8% per annum for 1and 1/2 year when interest is compounded half yearly is