Question

Consider principal is equal to rupees hundred and rate is equal to 5% per annum and then find the net compound interest and amount after each year for 10 years and again complete the following table
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Answer 1

Answer:

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Answer 2

Answer:

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Step-by-step explanation:

Compound Interest when Compounded Half Yearly

Example 2: Find the compound interest on Rs 8000 for 3/2 years at 10% per annum, interest is payable half-yearly.

Solution: Rate of interest = 10% per annum = 5% per half –year. Time = 3/2 years = 3 half-years

Original principal = Rs 8000.

Interestforthefirsthalfyear=8000×5×1100=420

. Amount at the end of the first half-year= Rs 8000 +Rs 400 =Rs8400

Principal for the second half-year =Rs 8400

Interestforthesecondhalf−year=8400×5×1100=420

Amount at the end of the second half year = Rs 8400 +Rs 420 = Rs 8820

Interestforthethirdhalfyear=8820×5×1100=Rs441

Amount at the end of third half year= Rs 8820+ Rs 441= Rs 9261. Therefore, compound interest= Rs 9261- Rs 8000= Rs 1261. Therefore,

compoundinterest=Rs9261−Rs8000=Rs1261