4. Find the compound interest for the following when
the interest is compounded half-yearly.
a. P=4500, R = 10% per year, T = 1 year
1
Answers
Answered by
0
Step-by-step explanation:
Example 1
Find the compound interest on Rs 1000 for two years at 4% per annum.
Solution: Principal for the first year =Rs 1000
S
I
=
P
×
R
×
T
100
S
I
f
o
r
1
s
t
y
e
a
r
=
1000
×
4
×
1
100
S
I
f
o
r
1
s
t
y
e
a
r
=
R
s
40
Amount at the end of first year =Rs1000 + Rs 40 = Rs 1040. Principal for the second year = Rs1040
S
I
f
o
r
2
n
d
y
e
a
r
=
1040
×
4
×
1
100
S
I
f
o
r
2
n
d
y
e
a
r
=
R
s
41.60
Amount at the end of second year,
A
m
o
u
n
t
=
R
s
1040
+
R
s
41.60
=
R
s
1081.60
Therefore,
C
o
m
p
o
u
n
d
i
n
t
e
r
e
s
t
=
R
s
(
1081.60
–
1000
)
=
R
s
81.60
Remark: The compound interest can also be computed by adding the interest for each year.
Similar questions