the compound interest on rs16000 for 1 and half year at 10% p.a. payable half yearly is
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Answered by
24
CI = P (1 + r/100) ^t - P
= 16000 (1 + 10/200)^3 - 16000
= 16000 * 21/20 * 21/20 * 21/20 - 16000
= 18522 - 16000
= 2522 is the interest
inhumandrowsey:
hi :)
how did u got t = 3, pls explain it would be a great help
see, when Interest is compounded half yearly and it is clearly stated that compounded over 1 and half years time but it was being compounded half yearly so we will count 1 and half year as 3 years. it is a rule that when interest is charged half yearly time gets doubled and rate gets half
thank uu very much
:)
Answered by
3
Answer:
Rs 2522
Step-by-step explanation:
It is calculated as under -
Interest rate per annum - 10%
No of rests per annum - 1 for annual, 2 for half year, 4 for Quarterly and 12 for monthly
Effective interest per rest - Per annum Interest rate divide by no of rest per annum - 10/2 = 5%
Rest Period in known time - 1–1/2 years / 6 months = 3
Interest = Principal x (1+Effective interest rate) raised to power 3 - Principal Amount
Or
16000 x 1.05 x 1,05 x 1,05 - 16000 = 2522/-
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