1.

calculate the compound interest on rs 15625 for 1 1/2 years at 8% per annum compounded semi annually?

Answer»

Given Principal AMOUNT= P= 15626

Rates of INTEREST PER annum= i =8%

Time= n =1 1/2years ×2 = 3(because compounded half yearly)

COMPOUND Interest = P[ (1+i)^n - 1]

=15625[ (1+8/100)^3 - 1]

=15625[(1 + 0.08)^3 -1]

=15625[ (1.08)^3 - 1]

=15625[1.259712- 1]

=15625[0.259712]

=4058 is the Compound Interest...

Then compounded Amount = Principal Amount + Compound Interest

=15625+ 4058 =19683 is the Compounded amount



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