Question

Find compound interest on rs 5000 at rate of 10% p.a compounded semi-annually for 1 1/2 years

Answer 1

Compound interest formula is
`A = P(1+ (r)/(n) ) ^(nt)` where A is the amount after T years, P is the principal amount you start with, R is the interest rate, and N is the amount of compounding periods. Semi-annually means we only have 2 compounding periods.

Now plug in:
`A=5000(1+ (0.10)/(2)) ^(1.5*2)` which becomes
`A=5000(1+ (0.10)/(2)) ^(3)`. Plug this into your calculator.

A = 5788.125. Because it's money, you would round to the nearest penny.

A = 5,788.13 dollars