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Calculate the amount and compound interest on Rs 62,500 for 1.5 years at 8 percent per annum compounded half yearly.

Q : 1       Calculate the amount and compound interest on

             (c)   Rs 62,500 for   1\frac{1}{2}   years at 8% per annum compounded half yearly.
 

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Given,

Principal,P =Rs 62500, 

Compound interest Rate,R = 8% compounded half yearly for 1.5 years.

Since it is compounded half yearly, R becomes half = 4%, and time period doubles, n = 3 years.

We know, Amount when interest is compounded annually, A = P(1+\frac{R}{100})^n

Therefore, the required amount = 62500(1+\frac{4}{100})^3  = Rs.70304

And Compound Interest, CI = Amount - Principal = Rs. (70304 - 62500) = Rs. 7804

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