Find the amount and the compound interest on Rs 8000 for

Question:

Find the amount and the compound interest on Rs 8000 for $1 \frac{1}{2}$ years at $10 \%$ per annum, compounded half-yearly.

Solution:

Given:

$\mathrm{P}=\mathrm{Rs} 8,000$

$\mathrm{R}=10 \%$ p. a.

$\mathrm{n}=1.5$ years

When compounded half - yearly, we have:

$\mathrm{A}=\mathrm{P}\left(1+\frac{\mathrm{R}}{200}\right)^{2 \mathrm{n}}$

$=\operatorname{Rs} 8,000\left(1+\frac{10}{200}\right)^{3}$

$=\operatorname{Rs} 8,000(1.05)^{3}$

$=\operatorname{Rs} 9,261$

Also,

$\mathrm{CI}=\mathrm{A}-\mathrm{P}$

$=\operatorname{Rs} 9,261-\operatorname{Rs} 8,000$

$=\operatorname{Rs} 1,261$

Leave a comment