Question

IN what time will $1,28,000 amount to $1,37,842 at 5% p.a.,interest being compounded half-yearly

Answer 1

Answer:

Find the compound interest on Rs 1000 for two years at 4% per annum.

Solution: Principal for the first year =Rs 1000

SI=P×R×T100SIfor1styear=1000×4×1100SIfor1styear=Rs40

Amount at the end of first year =Rs1000 + Rs 40 = Rs 1040. Principal for the second year = Rs1040

SIfor2ndyear=1040×4×1100

SIfor2ndyear=Rs41.60

Amount at the end of second year, Amount=Rs1040+Rs41.60=Rs1081.60

Therefore, Compound interest=Rs(1081.60–1000)=Rs81.60

Remark: The compound interest can also be computed by adding the interest for each year.

Step-by-step explanation: