Find the amount if a sum of Rs.7,500 is invested on compound interest at 8% p.a. fo 1.5 years when the interest is compounded half yearly.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Rs.8,436.48
Given that
The interest half-yearly compounded
Rate = 8%/2 = 4%
Time = 1.5 * 2 = 3 years
Amount = sum (1 + Rate/100)time
Amount = 7500 * ( 1 + 4/100)3
Amount = 7500 * 17576/15625 = 8436.48 Rs