Question

Find compound interest using the formula:

Principal=Rs. 3,000, Rate= 10% per compounded half-yearly, Time= 2 years.

plzz give me the solution with step by step explaination.​

Answer 1

Answer:

If the borrower and the lender agree to fix up an interval of time (say, a year or a half-year or a quarter of a year, etc.) so that the amount (Principal + Interest) at the end of an interval becomes the principal for the next interval, then the total interest over all the intervals, calculated in this way is called the Compound Interest and is abbreviated as C.I.

Compound Interest at the end of a certain specified period is equal to the difference between the amount at the end of the period and original principal i.e., C.I. = AMOUNT - PRINCIPAL.

Step-by-step explanation:

It is given that,

Original Principal = Rs. 3,000.

Rate of Interest = 10% per annum, interest is payable half-yearly = 5% per half-year.

Time = 2 years.

Now,

We know that,

S.I. = P * R * T/100

Principal for the first half-year

= Rs. 3,000

S.I. for the first half-year

= 3,000 * 5 * 1/100

= Rs. 150

Amount at the end of the first half-year

= Rs. 3,000 + Rs. 150

= Rs. 3,150

Principal for the second half-year

= Rs. 3,150

S.I. for the second half-year

= 3,150 * 5 * 1/100

= Rs. 157.50

Amount at the end of second half-year

= Rs. 3,150 + Rs. 157.50

= Rs. 3,307.50

Compound Interest (C. I.)

= Rs. ( 3,307.50 - 3,000 )

= Rs. 307.50

❤HOPE IT HELPS!❤

REGARDS.