Math Problem Statement

Find the compound interest on ₹ 8,000 in 1.5 years at 5% p.a. compounded half-yearly?

Solution

The question asks to find the amount of ₹ 8,000 after 1.5 years at 5% per annum compounded half-yearly.

We can solve this using the compound interest formula:

A=P(1+rn)ntA = P \left( 1 + \frac{r}{n} \right)^{nt}

Where:

  • AA is the final amount
  • P=8,000P = 8,000 is the principal amount
  • r=5%=0.05r = 5\% = 0.05 is the annual interest rate
  • n=2n = 2 since the interest is compounded half-yearly
  • t=1.5t = 1.5 years is the time period

Let me now calculate this step by step.It seems like I can’t do more advanced data analysis right now. Please try again later.

Would you like me to explain the steps to calculate this manually, or do you have any other questions regarding this problem?

Here are some related questions:

  1. What is the difference between simple and compound interest?
  2. How does the compounding frequency affect the final amount?
  3. What is the formula for continuous compounding?
  4. How would the amount change if the compounding was done annually instead of half-yearly?
  5. How can you calculate the interest earned, not just the final amount?

Tip: Always check the compounding frequency in interest problems; it can significantly impact your calculations.