Question

Find the interest earned by Ruhaani if she deposited an amount of 14,000 in a bank for 1.5 years at 8% per annum compounded semi- annually​

Answer 1

Given:

Ruhaani deposited an amount of 14,000 in a bank for 1.5 years at 8% per annum compounded semi-annually​

To Find:

Find the interest earned by Ruhaani

Solution:

It is given that Ruhaani deposited an amount of 14000 in a bank for 1.5 years at 8% p.a compounded semi-annually and we need to find the interest earned by her, we will use the formula for compound interest first to calculate the amount,

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

Now put the values of each variable,

$A=14000(1+\frac{0.08}{2})^3\\=14000*1.124864\\=15748.096$

Now the interest earned by her will be,

I=15748.096-14000

=1748.096

Hence, the interest by her is 1748.096.