The compound interest on a sum of Rs 20000 for \(1\frac{1}{2}\) years at 10% per annum, compounded semi-annually, is:
Rs 3152.50
For compounding semi-annually, the half-yearly rate is \(\frac{10}{2} = 5\%\) and the number of half-year periods in \(1\frac{1}{2}\) years is 3.
The amount is \(A = 20000 \left(1+\frac{5}{100}\right)^3 = 20000 \times (1.05)^3\).
Since \((1.05)^3 = 1.157625\), the amount is \(20000 \times 1.157625 = 23152.50\).
The compound interest is \(23152.50 - 20000 = 3152.50\).
Hence, the compound interest is Rs 3152.50.
Similar Questions
George deposited ₹ 15,000 in a bank, where compound interest is 10% per annum, compounded annually. How much interest will he get after two years ?
Important Questions from Compound Interest
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