Question

the compound interest on rupees 2000 for 1 year at the rate of 8% per annum when the interest is compounded semi annually is​

Answer 1

Step-by-step explanation:

Principal = Rs. 2000, Time = 9 months = 3 quarters.

Now, the rate is 40% per annum but the interest has to be paid 4 times a year, i.e., an interest of (40 / 4) % = 10% is applied every 3 months.

Thus, amount to be paid after 9 months = Rs. 2000 x (1 + 10 / 100)^ 3

= Rs. 2000 x 1.331 = Rs. 2662.

The compound interest payable for 9 months a 40% p.a. compounded quarterly is Rs. 662.