Find the total amount and total interest after one year if the interest is compounded half-yearly. Principal = ₹4000=₹4000equals, ₹, 4000 Rate of interest = 10 \%=10%equals, 10, percent per annum
Answers
Answer:
Compound interest is 415.25 Rs.
Step-by-step explanation:
In the given question,
Principal Amount, P = 4000
Time for interest , t = 1 year
Rate of interest, r = 10% per annum compounded quarterly
Now, we know that in case of compounded quarterly.
The rate of interest is reduced to 1/4 times of initial and time increases by 4 times.
So,
New rate, R = 10/4 = 2.5 %
New Time, T = 1 x 4 = 4 years
So,
Compound Interest is given by,
CI=P(1+\frac{r}{100})^{t}-PCI=P(1+100r)t−P
So,
\begin{gathered}CI=4000(1+\frac{2.5}{100})^{4}-4000\\CI=4000(1.025)^{4}-4000\\CI=4415.25-4000\\CI=415.25 \ Rs.\end{gathered}CI=4000(1+1002.5)4−4000CI=4000(1.025)4−4000CI=4415.25−4000CI=415.25 Rs.
Therefore, the Compound interest is 415.25 Rs.
Answer:
Compound interest is 415.25
In the given question,
Principal Amount, P = 4000
Time for interest , t = 1 year
Rate of interest, r = 10% per annum compounded quarterly
Now, we know that in case of compounded quarterly.
The rate of interest is reduced to 1/4 times of initial and time increases by 4 times.
So,
New rate, R = 10/4 = 2.5 %
New Time, T = 1 x 4 = 4 years
So,
Compound Interest is given by,
CI=P(1+\frac{r}{100})^{t}-PCI=P(1+
100
r
)
t
−P
So,
\begin{gathered}CI=4000(1+\frac{2.5}{100})^{4}-4000\\CI=4000(1.025)^{4}-4000\\CI=4415.25-4000\\CI=415.25 \ Rs.\end{gathered}
CI=4000(1+
100
2.5
)
4
−4000
CI=4000(1.025)
4
−4000
CI=4415.25−4000
CI=415.25 Rs.
Therefore, the Compound interest is 415.25 Rs.