Find the compound interest on E14000 for 1 1/2 years at 10% per annum, if the interest 월 is compounded hay - yearly?
Answers
Here,
Principal
(
P
)
=
R
s
.
10000
Rate of interest
(
R
)
=
10
%
per annum
⇒
R
=
5
%
per half yearly
Time
(
n
)
=
1
1
2
years
=
3
half years
Amount
(
A
)
=
P
(
1
+
R
100
)
n
=
10000
(
1
+
5
100
)
3
=
10000
(
1
+
1
20
)
3
=
10000
(
21
20
)
3
=
10000
×
21
20
×
21
20
×
21
20
=
R
s
11
,
576.25
Compound Interest
(
C
.
I
)
=
A
−
P
=
R
s
11
,
576.25
−
R
s
10
,
000
⇒
C
.
P
=
R
s
.
1576.25
So, Compound interest half yearly is
R
s
.
1576.25
---(1)
Rate of interest
(
R
)
=
10
%
Time
(
n
)
=
1
years
Amount
(
A
)
for
1
year
A
=
P
(
1
+
R
100
)
n
=
10000
(
1
+
10
100
)
1
=
10000
(
1
+
1
10
)
1
=
10000
(
11
10
)
1
=
10000
×
11
10
=
R
s
.
11
,
000
Interest for half year
1
2
year,
=
11000
×
1
×
10
2
×
100
[
∵
S
.
I
=
P
T
R
100
]
=
R
s
.
550
Therefore, total amount
=
R
s
.
11
,
000
+
R
s
.
550
=
R
s
.
11
,
550
Now,
C
.
I
=
A
−
P
=
R
s
.
11
,
550
−
R
s
.
10000
=
R
s
.
1550
So, Compound interest per annum is
R
s
.
1550
. ---(2)
From (1) and (2),
the interest
R
s
.
1576.25
is more than
R
s
.
1550
.
Hence, the answer is 'Yes'