Question

find the amount and the compound interest on 8000 at 10%pa for 1 1/2 years if the interest is compounded half yearly​

Answer 1

S O L U T I O N :

Given :

• Principal, (P) = Rs.8000
• Rate, (R) = 10% p.a
• Time, (n) = 1 1/2 years (3/2 years)

Explanation :

As we know that formula of the compounded half-yearly:

• A = P(1 + R/2/100)^2n

According to the question:

➻ A = P(1 + R/200)^2n

➻ A = 8000(1 + 10/200)^ 2 × 3/2

➻ A = 8000(1 + 10/200)³

➻ A = 8000(1 + 1/20)³

➻ A = 8000(20 + 1/20)³

➻ A = 8000(21/20)³

➻ A = 8000 × 21/20 × 21/20 × 21/20

➻ A = 8 × 21 × 21 × 21/8

➻ A = 21 × 21 × 21

➻ A = Rs.9261

Now, as we know that compound Interest :

➻ C.I. = Amount - Principal

➻ C.I. = Rs.9261 - Rs.8000

➻ C.I. = Rs.1261

Thus,

The Amount & compound Interest will be Rs.9261 & Rs.1261 .