Question

sunil invested 50000 for 18 months at the rate of 16% p.a. compounded half- yearly. Find the compound interest.

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Answer 1

Answer:

Rs.12985.60

Step-by-step explanation:

When compounded half-yearly, the Rate is halved and the Time is doubled.

Principal (P) = Rs.50000

Rate (R) = (16÷2)% = 8%

Time (n) = 18 months = 3/2 years = (3/2 × 2) years = 3 years

Amount (A) = P (1 + R/100)ⁿ

=> A = 50000 (1 + 8/100)³

=> A = 50000 (27/25) (27/25) (27/25)

=> A = Rs.62985.60

Compound Interest = A-P = Rs.(62985.60-50000) = Rs.12985.60