Question

Find the CI at the rate of 14% per
annum for 1 year on a sum of 12,000
compounded half-yearly.​

Answer 1

Question

Find the compound interest at the rate of 14% per annum for 1 year on the sum of Rs12,000 compounded half-yearly.

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Solution

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Sum (p)=Rs.12000

Rate of interest =14% per annum

Time =1 year

Since the interest is compounded half yeary.

Therefore,

R=214=7%

n=2

Therefore,

A=P(1+100R)n

⇒A=12000(1+1007)2

⇒A=100×10012000×107×107=Rs.13738.8

Therefore,

Compound interest =A−P=13738.8−12000=Rs.1738.8