Question

calculate amount and compound interest on rupees 62500for 1 whole1/2 year at the rate of 8% per annum half early

Answer 1

☆ Given ☆

• Principal = ₹ 62500
• Rate of interest = 8%

☆ To calculate ☆

• The amount and compound interest.

☆ Solution ☆

Here Principal ( P ) = 62500

Rate of interest = 8% per annum = $\frac{8}{2}$ or 4% half-yearly.

Time (n) =$1 \times \frac{1}{2}$ years = $\frac{3}{2}$ years = $\frac{3}{2} \times 1$ half-yearly = 3 half-yearly

( $\frac{3}{2} \times 1$ = 3 conversion periods )

Amount ( A ) = P $(1 \times \frac{R}{100})^{n}$

i.e., A = 62500 $(1 \times \frac{4}{100})^{3}$

or A = 62500 × $\frac{104}{100}$ × $\frac{104}{100}$ × $\frac{104}{100}$

or A = 70304

Now compound interest

= Amount - Principal

= ₹ 70304 - 62500 = 7804

Thus, the required amount is 70304 and compound interest is 7804.