Question

What will be compound interest of Rs.40000 for 18
months at 13% p.a.​

Answer 1

Compound Interest Formula:

The working formula is $A=P(1+\frac{r}{100})^{t}$,

where A = total amount,

P = sum of money,

r = rate of compound interest and

t = time of investment.

Step-by-step explanation:

Given, P = Rs. 40000, r = 13% p.a.

Here, t = 18 months

= $\frac{18}{12}$ years

= $\frac{3}{2}$ years

Putting these values in the above formula, we get

A = Rs. $40000\times (1+\frac{13}{100})^{3/2}$

= Rs. $40000\times (\frac{113}{100})^{3/2}$

= Rs. $48048$

Thus compound interest = A - P

= Rs. (48048 - 40000)

= Rs. 8048

Answer:

The required compound interest is Rs. 8048.