Question

Find the compound interest (payable half yearly) on $50,OOO for ,1/2 years at 10 p
ercent per annum​

Answer 1

Answer:

It is given that 

Principal (P) = 50000

Rate of interest (r) = 8% p.a. = 4% semi-annually

Period (n)= 121 years = 3 semi-annually

We know that 

Amount = P(1+r/100)n

Substituting the values 

= 50000(1+4/100)3

By further calculation 

= 50000(26/25)3

= 50000×26/25×26/25×26/25

= 56243.20

Here

Compound interest = A - P

Substituting the values 

= 56243.20−50000

= 6243.20