Question

Ramesh deposited a sum of ₹6250 in the Allahabad Bank for 1 year, compound half-yearly at 8% per annum. Find the compound interest he gets.

Answer 1

Answer:

➡ Compund interest is RS. 510

Step-by-step explanation :-

➡ Money deposited = RS. 6250

➡ Rate % = 8% = 8/2 = 4% half yearly

➡ Time = 1 year = 1 * 2 = 2 half years

Compound interest=P[(1 + r/100)^n-1]

➡ 6250[(1 + 4/100)^2 - 1]

➡ 6250[(1 + 1/25)^2 - 1]

➡ 6250[(26/25)^2 - 1]

➡ 6250[676/625 - 1]

➡ 6250[676 - 625/625]

➡ 6250[51/625]

➡ 6250 * 51/625

➡ 510