Question

) Dara invests $800 at 12.5% per annum compound

interest compounded half- yearly .What in his amount of
interest at the end of the first year?

Answer 1

answer: $1,012.50

Explanation:

12.5 ÷ 100 = 0.125

0.125 × 800 = 100

800 + 100= 900 ( half-yearly interest)

0.125 × 900 = 112.5

900 + 112.5 = $1,012.50 ( end of first year interest)