Question

Find the compound interest on Rs. 1,25,000 at 12 % per annum for 1 ½ years, compounded annually

Answer 1

Answer:

Step-by-step explanation:

Compound interest = amount - principle

Amount = principle(1 + rate/100)^n

Given,

Principle = 125000

Rate = 12%

Year = 1 1/2

So, put the values and we will get amount

Amount = 125000(1 + 12/100)^1.5

Amount = 125000 x 112/100 x 106/100(rate becomes according to time breaks down)

Amount = 148400

Now, compound interest is

148400 - 125000 = 23400 rs