Question

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Answer 1

Answer:

Rs. 762.5

Step-by-step explanation:

For first year,

P=10000, R=5%, T=1

Interest = PRT/100

= 10000 x 5 x 1/ 100

= 500

Amount = Interest + Principle =10000+500

= 10500 Rs

For second year principle will be amount of previous year (since interest is compounded)

P=10500, R=5%, T= 6months = 0.5 years

Interest = PRT/100

= 10500 x 5 x 0.5 / 100

= 262.5

Total interest = 500 + 262.5 = Rs. 762.5

∴ Compound interest paid after 1 year and 6months is Rs. 762.5

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