Question

what will the amount to be repaid for a principal of rs.12000 for 1½years at 10% compounded half yearly​

Answer 1

Answer:

Answer

As interest is compounded half yearly, so number of conversion periods in 1

2

1

years is 3, So n=3

rate for half year =

2

1

×10%=5%

A=P(1+

100

R

)

n

A=12000(1+

100

5

)

3

=12000(

100

105

)

3

=Rs.13891.50

Compound interest =A−P

=13891.50−12000

=Rs.1891.50