Question 19
If the interest is compounded half-yearly, find the Compound Interest on the sum of Rs.18500 at the rate of40% per annum for 18 months.
Solution
compound interest + P= $$P(1+\frac{R}{100})^n$$
= $$18500(1+\frac{20}{100})^3$$
In Time, we can write 18 months as$$1\frac{1}{2}$$ years which can be written as 3 half years.
compound interest + P = 31968
So, Compound Interest will be,
compound interest = 31968 - 18500
So, Compound Interest is Rs.13468.
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