Question

golu lent polu 32,500 to purchase a bike at 12.5% per annum. If the interest is compounded semi-annually,find the interest paid by polu after 1 1/2 years.

Answer 1

Step-by-step explanation:

Given  

golu lent polu 32,500 to purchase a bike at 12.5% per annum. If the interest is compounded semi-annually,find the interest paid

• semi – annually is 6 months
• P = 32,500, r = 12.5 %. n = 1 1/2 =3/2  
• We know that A = P(1 + r/100)^n
•                        A = 32500 (1 + 12.5 / 100 x 1/2 )^3/2 x 2
•                            = 32,500 ( 17/16 )^3
•                         A = 38982.5439
• Now C.I = A – P
•              = 38982.5439 – 32,500
•       C.I = 6482.5439

Answer 2

Answer:C.I. = 6482.5439

hope it's helpful for you