Question

16. Find the amount and the compound interest on 12,800 for one year at 7 %
2
per annum compounded semi-annually.
99.
Answer :- ​

Answer 1

Step-by-step explanation:

If 712% is the interest of 1 year, then the interest of one quarter can be calculated by dividing it by 2.

Then, the interest for one quarter is 712=1522=154%

Also, there are 2 half-years in a year, so time will be taken as 2.

We know that amount on a principal amount P at an interest of r% and time t years when interest is compounded annually is given by A=P(1+r100)t

Now substitute 12800 for P , 154 for r

and 2 for t in the above formula.

A=12800⎛⎝⎜⎜1+154100⎞⎠⎟⎟2⇒A=12800(400+15400)2

On simplifying the expression, we will get,

A=12800(415400)2⇒A=13778

The total amount is Rs. 13778.

We will now calculate the compound interest by subtracting principal amount from the total amount.

13778−12800=978

Hence, the compound interest is Rs. 978.