Question

Find the compound interest on Rs 25,000 for 1.5 yrs 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 = 20% = 0.1 (∵r=20%p.a. so r = 10% half yearly)

∴A=25000 (1.1)³. = Rs. 33275