Question

rupees 62500 for 1and half year years at 8 percent per annum compounded half yearly calculate the amount and compound interest
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Answer 1

Answer:

Given, Principal (P) = Rs. 62,500

Rate =8 % per annum or 4 % per half year

Number of years = 121

There will be 3 half years in 121 years.

We know,

A=P[1+100R]n

⇒A=62500[1+(1004)3]

⇒A=62500×2526×2526×2526

⇒A=70304

compound interest =A−P

= Rs. 70304 - Rs. 62500

= Rs.7,804.