Question

A sum of 1250 is deposited in a bank at 8% rate of interest p.a. compounded half yearly for 1.
will be the interest earned in a year

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Answer 1

Principle = 1250

Rate % = 8%

Time = 1 yr

Amount = ?

CI = ?

We know,

• Amount = P [ 1 + R/2 / 100]^2n
• A = 1250 [ 1 + 8/2 / 100]^2*1
• A = 1250 [ 1 + 4 / 100]^2
• A = 1250 [104/100]^2
• A = 1250 [26/25]^2
• A = 1250 * 26/25 * 26/25
• A = 1352

We know,

• Amount = Principle + CI
• 1352 = 1250 + CI
• 1352 - 1250 = CI
• 102 = CI

Therefore, CI = RS. 102