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 $A = P(1+ \frac{r}{n} ) ^{nt}$ 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: $A=5000(1+ \frac{0.10}{2}) ^{1.5*2}$ which becomes $A=5000(1+ \frac{0.10}{2}) ^{3}$. Plug this into your calculator. 

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

A = 5,788.13 dollars