Question

Find the amount and the compound interest on 31600 for one year at the rate of 10% per annum compounded half-yearly.
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Answer 1

Answer:

Given:

Present value =₹31600

Interest rate =10% per annum

Time =1 year and compounded half-yearly

To find the amount we have the formula,

Amount (A)=P(1+(r/100))

n

where P is present value, r is rate of interest, n is time in years.

Now substituting the values in above formula we get,

∴A=31600(1+(10/2)/100)

2

⇒A=31600(1+5/100)

2

⇒A=31600(1+1/20)

2

⇒A=31600(21/20)

2

⇒A=31600×1.05

⇒A=₹ 33180

∴ Compound interest =A–P

=33180–31600=₹1580