Question

calculate the amount and compound interest on ₹20,000 for 1 year 8% per annum compounded half yearly sum in meth​

Answer 1

Given:

• Principal = Rs. 20,000
• Rate = 8% compounded half yearly. So, R = $\dfrac{8}{2}$ = 4%
• Time = 1 year = 2 × 1 year = 2 years

What To Find:

We have to find the amount and compound interest.

How To Find:

To find the compound interest we will use the formula

1. $\sf{A = P \left( 1 + \dfrac{R}{100} \right)^T}$

2. CI = A - P

Solution:

• Finding the amount

Using the formula,

⇒ $\sf{A = P \left( 1 + \dfrac{R}{100} \right)^T}$

Substitute the values,

⇒ $\sf{A = 20000 \left( 1 + \dfrac{4}{100} \right)^2}$

Solve the brackets,

⇒ $\sf{A = 20000 \left( \dfrac{104}{100} \right)^2}$

Remove the brackets,

⇒ $\sf{A = 20000 \times \dfrac{104}{100} \times \dfrac{104}{100}}$

Cancel the zeros,

⇒ $\sf{A = 2 \times 104 \times 104}$

Multiply the numbers,

⇒ A = Rs. 21,632

• Finding the amount

Using the formula,

⇒ CI = A - P

Substitute the values,

⇒ CI = Rs. 21,632 - Rs. 20,000

Subtract the amount,

⇒ CI = Rs. 1,632

∴ Hence, the amount and compound interest are Rs. 21,632 and Rs. 1,632.