Question

Question 1 (d)
Calculate the amount and compound interest on:
d) Rs 8000 for 1 years at 9% per annum compounded half yearly. (you could the year by year calculation using S.I formula to verify).

Answer 1

(d) Here, Principal (P) = Rs 8000 Time (n) = 1 years = 2 years( Compounded half yearly)
Rate of interest (R) = 9% = $\frac{9}{2}$ (Compounded half yearly)
$Amount\left(A\right)=P{(1+\frac{R}{100})}^n=8000{(1+\frac{9}{2\times 100})}^2=8000{(1+\frac{9}{200})}^2$
$=8000{\left(\frac{209}{200}\right)}^2=8000\times \frac{209}{200}\times \frac{209}{200}$
= Rs 8,736.20
Compound Intersect (C.I) = A - P = Rs 8736.20 - Rs 8000 = Rs 736.20