Given:
Present value= ₹ 12800
Interest rate= 7 ½ % per annum
Time=1 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 = 12800 (1 + (15/4)/100)2
⇒ A = 12800 (1+3/80)2
⇒ A = 12800 (83/80)2
⇒ A = 128 × 6889/64
⇒ A = ₹ 13778
∴ Compound interest = A – P
= 13778 – 12800 = ₹ 978
