Question

The compound interest on₹ 8000 at 10% p. a for 2 years is: *​

Answer 1

Answer:

We have Rate of interest = 10% per annum = 5% per half year Time = 1

2

1

years = 3 half year

Original

principal = Rs.8000 Interest for the first half year =

Rs.[

100

8000×5×1

]=Rs.400

Amount at the end of the first half year = Rs.8000 + 400 = Rs. 8400

Principal

for the second half year = Rs.8400 Interest for the second half year =

Rs.(

100

8400×5×1

)=Rs.420

Amount at the end of the second half year = Rs.8400 + Rs.420 = Rs. 8820 Principal for the third half year = Rs.8820

Interest

for the third half year = Rs.(

100

8820×5×1

)=Rs.441 Amount at the end of third half year =

Rs.8820 + Rs.441 = Rs.9261

∴ Compound interest = Rs. 9261 - Rs. 8000 = Rs. 1261