Given: Present value= ₹ 40960
Interest rate= 12 ½ % per annum
Time=1 ½ = 3/2 years 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 = 40960 (1 + (25/4)/100)3
⇒ A = 40960 (1+1/16)3
⇒ A = 40960 (17/16)3
⇒ A = 40960 × 4913/4096
⇒ A = ₹ 49130
∴ Compound interest = A – P
= 49130 – 40960 = ₹ 8170