What will be the compound interest on rupees 30000 at the rate of 12% per annum in one and half year?

Find the compound interest on Rs. 1000 at the rate of 8% per annum for 1 1/2 years when interest is compounded half yearly?

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∴ Compound interest for the third half-year
or 112 years =Rs.40+Rs.41.60+Rs.43.264=Rs.124.864

Alternate way:

Interest is compounded half yearly

∴ Interest @ half year =82=4%

n = number of times interest added in 112 years =3

Amount (A) is given by

A=P[1+r @ half year100]n

=1000[1+4100]3

=1000×104100×104100×104100

=104×104×10410×100

=1124.864

Compound Interest = Amount − Principal

=1124.864−1000=Rs. 124.864