Question

solve this question in full solution

Answer 1

For simple Interest
P = Rs 10000
R = 10 % p.a.
T =  1 Year

I = $\frac{P * R *T}{100}$
  = $\frac{10000 * 10 * 1}{100}$
  = $Rs 1000$

For compounded half yearly

P = Rs 10000
R = $(\frac{10}{2})$ % p.a.
    = 5% p.a.
T(n)= 1 * 2 Years
     = 2 Years

A  = $P(1 + \frac{R}{100})^{n}$
     = $10000(1+ \frac{5}{100})^{2}$
     = $10000(1+ \frac{1}{20})^{2}$
     = $10000( \frac{20+1}{20})^{2}$
     = $10000( \frac{21}{20})^{2}$
     = $10000( \frac{441}{400})$
     = $\frac{4410000}{400}$
     = $\frac{44100}{4}$
     = 11025

Compound Interest = A-P
                                  = 11025-10000
                                  = Rs 1025


Interest Paid Extra = Rs 1025-1000
                               = Rs 25


Hope it helps.
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