Question

Maria invested ` 8,000 in a business. She would be paid interest at 5% per annum compounded annually. Find amount compounded half yearly​

Answer 1

Here P=Rs.8000,R=5%per annum and n=2 years

∴ Amount after 2 years =P(1+100R)n   

Amount after 2 years =Rs.[8000×(1+1005)2]

Amount after 2 years =Rs.(8000×100105×100105)=Rs.8820

Now, the principal for the third year will be the amount at the end of the second year.

Interest=100P×R×T

Interest=1008820×5×1 = Rs441