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.

Share on Whatsapp Share on Whatsapp

Create a FREE account and get: