Question
Sara deposited Rs. 18,000 into an investment that offers
a compound interest rate of 20% per annum, with semi-annual compounding. Calculate the interest accrued by Sara after one and a half years.Solution
ATQ, Interest earned by Sara =18000 × {(1 + 0.20/2)(1.5×2) – 1} = 18000 × {1.331 – 1} = 18000 × 0.331 = Rs. 5,958
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