Calculate the amount and compound interest on 5,500 for 1 whole 1/2 years at the rate of 15% per annum compounded annualy
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Given :
Principal, P = Rs. 5500
Rate of interest, R = 15%
Time, T = 2 years
Interest is compounded at every 8 months.
To find :
Compound interest
Formula used :
Solution :
Time for compounded at every 8 months = 2 × (12/8)
⇒ Time for compounded at every 8 months = 3 units
Rate of interest for compounded at every 8 months = 15 × (8/12)
⇒ Rate of interest for compounded 8 monthly = 10 units
⇒ C.I. = 55 × (331/10)
⇒ C.I. = 1820.5
∴ the compound interest earned is Rs. 1820.5
Hope it was helpful.
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