Question

Calculate CI on a sum of ₹6,500 for 2 years at 6% per annum if the interest is compounded bi-annually​

Answer 1

Answer:

For first year

P=6500,R=5%, T=1

Interest =100PRT

=100(6500×5×1)=325

 Amount = Interest + Principle =325+6500=Rs.6825

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

P=6825,R=6%, T=1

Interest =100PRT

=100(6825×6×1)

=Rs.409.5

Amount=P+I=6825+409.5=7234.5

Total interest =325+409.5=Rs.734.5

∴  Amount after 2 years will be Rs.7234.5 and interest Rs.734.5