Question

(d) 8,000 for 1 year at 9% per annum compounded half yearly.
(You could use the year by year calculation using SI formula to verify).​

Answer 1

Answer:

For Compound Interest,

Amount=Principal(1+

100

Rate

)

Time

Compound Interest = Amount- Principal

Therefore, in this case, since the interest is compounded annually the time =2.5 years

and rate =4.5% per half year

Amount=8000(1+

200

9

)

2

Amount =8736.20

Compound Interest = Amount - Principal =8736.20−8000=Rs.736.20