Find the amount if a sum of Rs.7,500 is invested on compound interest at 8% p.a. for 1.5 years when the interest is compounded half yearly.

Rs.8,436.48

Rate of interest if compounded half yearly = \(\frac{8 }{2}\)% = 4%

If interest is compounded half yearly, n = 3

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

= 7500 × ( 1 + \(\frac{4 }{100}\))³

= 7500 × \(\frac{26 }{25}\) × \(\frac{26 }{25}\) × \(\frac{26 }{25}\)

= Rs. 8436.48