Question

Calculate the amount and compound interest on ₹ 8000 for 1 year at 9% per annum compound half yearly.
[3 marks]

Answer 1

Principal (P) = ₹ 8000

Rate of interest = 9% per annum or $\frac{9}{2}$% per half year

Number of years = 1 year

There will be 2 half years in 1 year

Amount, $A=P{[1+\frac{R}{100}]}^n$
= $8000{[1+\frac{9}{200}]}^2=8000{\left[\frac{209}{200}\right]}^2=8736.20$

[2 marks]

C.I. = A – P = ₹ 8736.20 – ₹ 8000 = ₹ 736.20
[1 mark]