Question

RS.10000 DEPOSITED INTO SBI FOR 3 YEARS AT 8 PERCENT RATE OF INTEREST COMPOUNDED SEMI-ANNUALLY

Answer 1

The amount of interest is Rs. 12597 and the compound interest is Rs. 2597

Step-by-step explanation:

Given:

Rs.10000 deposited for 3 YEARS at 8 %

To find: The amount of interest

Solution:

For 1st year

Principal(P) =Rs. 10000, Rate(R) =8%

Time(T) =1 year

Interest = $\frac{10000(8)(1)}{100}$

Interest = Rs. 800

For 2nd year

P= Rs. 10000 +Rs. 800= Rs. 10800

For 3rd year

P= Rs. 10800 +Rs. 864

P =Rs. 11664,

R=8%,

T=1 year

Interest = $\frac{11664(8)(1)}{100}$

Interest = 933.12

Amount =Rs. 11664 +933.12 =Rs. 12597.12

Hence required amount =Rs. 12597.12

Compound interest =Rs. 12597.12 -10000

                                 =Rs. 2597.12

Final answer:

The amount of interest is Rs. 12597 and the compound interest is Rs. 2597

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