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Find compound interest on rs 25000 for 1 and half year at 20% rate compounded half yearly.

Rupender Singh 1 year, 4 months ago

Principal = Rs. 25000

Time = {tex}1{1 \over 2}\,year{/tex} = 3 Half Years

Rate = 20% p.a. = 10% Half yearly.

{tex}Amount\,\, = \,\,P{\left( {1\,\, + \,\,{R \over {100}}} \right)^n}\,\, = \,\,25000\,{\left( {1\,\, + \,\,{{10} \over {100}}} \right)^3}\,\, = \,\,25000\,{\left( {1\, + \,{1 \over {10}}} \right)^3}\, = \,25000\,{\left( {{{10\, + \,1} \over {10}}} \right)^3}{/tex}

{tex}= \,25000\, \times \,\,{{11} \over {10}}\,\, \times \,\,{{11} \over {10}}\,\, \times \,\,{{11} \over {10}}\,\, = \,\,Rs. 33275{/tex}

Compound Interest = Amount - Principal = Rs (33275 - 25000) = Rs. 8275

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