Question

What will be the compound interest on₹ 5000 if it is compounded 1 year 6 months at 8% per annum

Answer 1

Solution

• compound interest on rupees 5000 if it is compounded 1 year 6 months at 8% per annum

Given ,

• principal = ₹ 5000
• time = 1 year 6 months , so t = 3
• rate per annum = 8%

To find ,

• we have to find here the compound interest ?

So ,

• to find the compound interest we know that we have to use the formula of that ; p(1+r/100)^t - p

now putting the value in the formula we get ;

• C.I. = p(1+r/100)^t -p
• = p ((1+r/100))^t - 1
• = 5000((1+8/100))^3-1
• = 5000(0.2597)
• = ₹1298.5

The compound interest is ₹1298.5 .