Q : 1 Calculate the amount and compound interest on
(c) Rs 62,500 for years at 8% per annum compounded half yearly.
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 =
Therefore, the required amount = = Rs.70304
And Compound Interest, CI = Amount - Principal = Rs. (70304 - 62500) = Rs. 7804