Question

how much would a sum of rupees £25,000 amount to in one and half years and 8 % if the interest is compounded half yearly

Answer 1

Interest= 8% per 6 months
principal= ₹25,000
1 and 1/2 year = 3 × 6 months

1st 6 months' interest
= 8% of ₹25,000
= 8/100 × 25,000
= ₹2,000

2nd 6 months' compounded interest
= 8% of ₹(25,000+2,000)
= ₹ (8/100 × 27,000)
= ₹ 2,160

3rd 6 months' compounded interest
= 8% of ₹(27,000+2,160)
= ₹ (8/100 × 29,160)
= ₹ 2,332.80

therefore amount at the end of 1 and 1/2 years = ₹(29,160+2,332.80)
= ₹31,492.80 (≈ ₹31,493)


Hope my answer was helpful to you amigo ;)