Question

Find the compound interest on 6250
for 1year at 8% per annum
compounded half yearly ?​

Answer 1

Step-by-step explanation:

Present value= ₹ 6250 Interest rate= 8% per annum Time=1 year To find the amount we have the formula, Amount (A) = P (1+(R/100))2n 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 = 6250 (1 + (8/2)/100)2 ⇒ A = 6250 (1+4/100)2 ⇒ A = 6250 (1+1/25)2 ⇒ A = 6250 (26/25)2 ⇒ A = 10 × 26 × 26 ⇒ A = ₹ 6760 ∴ Compound interest = A – P = 6760 – 6250 = ₹ 510