Question

find the amount and compound interest on Rs 525 for 2 year 5 month at 8% per annum payable semi annually (Ans:624.41,99.41)

Answer 1

The compound interest accumulation formula is :

P. (1 + i) ⁿ = A

P = Principle amount

i = interest rate

n = Time in years

A = Accumulated amount

CALCULATIONS

1.) Amount

n = 2,5/12 years = 29/12 years × 2 = 29/6

i = 8%/2 = 4%

P = 525

NOTE : we multiply the time by two and divide the rate by two since the interest is compounded semiannually.

525 × (1.04)^29/6 = 1.20873 × 525 = 634.58

2.) Compound interest

Interest = Accumulated value - principle

634.58 - 525 = 109.58

Answer 2

Answer:

634

Step-by-step explanation:

amount =principal*(1-i)