Given:
Present value= ₹ 31250
Interest rate= 8 % per annum
Time=1 ½ year= 3/2 year and compounded half yearly
To find the amount we have the formula,
Amount (A) = P (1+(R/100)2n
Where P is present value, r is rate of interest, n is time in years.
Now substituting the values in above formula we get,
∴ A = 31250 (1 + (8/2) /100)3
⇒ A = 31250 (1+4/100)3
⇒ A = 31250 (1+1/25)3
⇒ A = 31250 (26/25)3
⇒ A = 31250 × 17576/15625
⇒ A = ₹ 35152
∴ Compound interest = A – P
= 35452 – 31250 = ₹ 3902
