Question

Calculate the amount when the principal is Rs.12550 and the rate of interest is 9% semi annually and the time is 2.5 years .

Answer 1

.09/2 = .045
.045 * 12550 * 5 = total interest if simple interest

Answer 2

Compounded semi-annually(see similar problems).
A = Po(1+r)^n.

r = 0.09/2 = 0.045.
n = 2comp./ yr. * 2.5yrs = 5 compounding periods.
A = 12,550(1+0.045)^5 = 15,639.58