What is the compound interest (in ₹) on a sum of 8192 for $1\frac{1}{4}$ years at 15% per annum, if interest is compounded 5- monthly ?

1634

Amount = Principal × ( 1 + \(\frac{rate }{100}\) )ⁿ

Interest is compounded 5 - monthly .

So , n = \(\frac{15}{5}\) = 3

Rate = \(\frac{5 }{12}\) × 15% = 6.25%

Now ,

Compound Interest  = Principal × ( 1 + \(\frac{rate }{100}\) )ⁿ - Principal

= 8192 × ( 1 + \(\frac{6.25}{100}\) )³ - 8192

= 8192 × ( 1 + \(\frac{1}{16}\) )³ - 8192

= 8192 × \(\frac{17}{16}\)× \(\frac{17}{16}\)× \(\frac{17}{16}\) - 8192

= 9286 - 8192

= Rs.1634