What will be the compound interest (in ₹) on a s11m of ₹7,200 for 18 months at a rate of 20% per annum. if the interest is compounded half-yearly (nearest to an integer)?

2,383

As interest  is compounded half - yearly . So, effective annual rate = 10%

Amount = P$(1 \;+\; \frac{R}{100})^t$

= 7200( 1 + \(\frac{10}{100}\) )³

= 7200 ×  \(\frac{11}{10}\) ×  \(\frac{11}{10}\) ×  \(\frac{11}{10}\) 

= 9583.2

So, Compound interest = 9583.2 - 7200

= 2383.2

= 2383  ( approx )