Question

Rs.62,500 for 1.5 years at 8% per annum compounded half yearly

Answer 1

P = Rs. 62,500
r = 8%
t = 1.5yrs
n = 2

$A=P(1+ \frac{r}{n} )^{nt} =62500(1+ \frac{0.08}{2} )^{2*1.5}$

⇒$A=62500(1+0.04)^{3}$

⇒$A=62500(1.04)^{3} =70304$

After 1.5 years, total amount will be Rs. 70304

Answer 2

Sum = P ( 1 + r / 100 )^n

P = principal amount = Rs 62,000
n = number of times, interest is compounded  =  3 times in 1.5 years
r = interest per the duration between compounding intervals =
     = interest for 6 months = 4  

S = Rs 62,500 ( 1 + 4/ 100)^3 = Rs 70, 304