Question

Jaimin takes Rs. 10000 at 12% per year as rate of interest, for 2 years. How much interest he

has to pay at the end of two years?​

Answer 1

principal amount given is Rs. 10, 000

Interest rate is 8% per year for 12 months.

It is compounded half yearly.

So,After 6 months, interest added =  100 \8 ×10,000

=Rs.800.

Sum = 10000+800

=Rs. 10,800.

After 12 months, It is compounded with interest

=10,800×  100 \8  = Rs.8.64

∴ Compound interest =800+864

=Rs.1664