Question

Find the compound interest on Rs. 1000 at the rate of 8% per annum for 1 1/2 years when interest is compounded half yearly.

Answer 1

Given details are,

Principal (p) = Rs 1000

Rate (r) = 8%

Time = 1 ½ years = 3/2 × 2 = 3 half years

By using the formula,

A = P (1 + R/100) ⁿ

= 1000 (1 + 8/100)³

= 1000 (208/100)³

= Rs 1124.86

∴ Compound Interest = A – P = Rs 1124.86 – Rs 1000 = Rs 124.86