Question

Find the compound interest to be paid at the end of  1 year on ₹ 8000 at   8 % per annum  compounded half yearly.                                                   ​

Answer 1

Answer:

Given:

Present value =₹8000

Interest rate =8% 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=8000(1+(8/2)/100)

⇒A=8000(1+4/100)

⇒A=8000(1+1/25)

⇒A=8000(21/25)

⇒A=₹ 6720

∴ Compound interest =A–P

=6720–8000=₹1280

Answer 2

Answer:

Compound interest Semi annually =

$p{( ({1 + \frac{r}{200} )}^{2t} - 1})$

=8000{(1+8÷200)^(2×1) -1}

=8000× 0.0816

=652.8