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2014-11-18T04:52:15+05:30

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Rate of interest for 6 month period = 12.5% /2   = 6.25 %

Number of times the interest is compounded = 3 times in 1 1/2 years

Sum accumulated on compound interest in 1 1/2 years : 
         = Rs 40, 960 (1 + 6.25/100 )³ 
           = Rs 40, 960 * 1.0625³ = Rs 49, 130.

Interest paid by Amar = Rs 49, 130 - 40, 960 = Rs 8, 170.

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