Calculation of Compound Interest on Rs.16,004 for 1.5 years at 10% per annum payable half yearly

Formula: A = P(1 + r/n)^(nt)

Where

A = Amount
P = Principal
r = Rate of Interest
n = Number of times interest is compounded in a year
t = Time in years

Step 1: Calculate the half-yearly rate of interest

Since the interest is payable half-yearly, we need to calculate the half-yearly rate of interest

Half-yearly rate of interest = Annual rate of interest/2 = 10%/2 = 5%

Step 2: Calculate the number of times interest is compounded in a year

Since the interest is payable half-yearly, the number of times interest is compounded in a year is 2.

Step 3: Calculate the amount after 1.5 years

Using the formula A = P(1 + r/n)^(nt), we can calculate the amount after 1.5 years.

A = 16004(1 + 0.05/2)^(2*1.5)
= 16004(1.025)^3
= Rs. 18,097.19

Step 4: Calculate the compound interest

Compound interest = Amount - Principal
= Rs. 18,097.19 - Rs. 16,004
= Rs. 2,093.19

Therefore, the compound interest on Rs.16,004 for 1.5 years at 10% per annum payable half yearly is Rs. 2,093.19.