Question

compounded half yearly with explanation​

Answer 1

Answer : Amount = 9261, CI = 1261

Here, the interest is compounded half-yearly. So,

Principal (P) = 8,000

Number of years (n) = 1(1/2) × 2 = 3/2 × 2 = 3

Rate of interest compounded half-yearly (r) = 10/2% = 5%

Now, A = P (1 + r/100)^n

⟹ A = 8,000(1 + 5/100)^3

⟹ A = 8,000(1 + 1/20)^3

⟹ A = 8,000 × (21/20)^3

⟹ A = 8,000 × 9261/8000

⟹ A = 9,261 and

Compound interest = Amount - Principal

= 9,261 - 8,000

= 1,261

Therefore, the amount is 9,261 and the compound interest is 1,261