Question

Divakaran deposited a sum of Rs 6250 in the Allahabad Bank for 1 year, compounded half-yearly at $8\%$ per annum. Find the compound interest he gets.

Answer 1

$\text{Principal (p) = Rs}6250\text{Rate (r)}8\%p.a.or4\%\text{half yearly}\text{Period (t) = 1 year = 2 half years}\text{Interest for the first half year}=\frac{prt}{100}=\frac{6250\times 4\times 1}{100}=Rs.250\text{Amount at the end of first half years = Rs 6250 + 250 = Rs. 6500}\text{Principal for the second half year = Rs 6500}\text{Interest for the second half year = Rs.}\frac{6500\times 4\times 1}{100}=Rs.260\text{Compound Interest for one year = Rs. 250 + 260 = Rs. 510}Ans.$