Question

Find the amount and compound interest for $Rs7500$ for $1$ year at $8\%$ per annum compounded half-yearly.

Answer 1

As we know that,

$A=P{(1+\frac{R}{100})}^n$

Here,

$A=$ Amount

$P=$ Principle $=Rs.7500$

$R=$ Rate of interest $=8\%$

$n=1$ year $=2$ half years

Therefore,

$A=7500{(1+\frac{8}{100})}^2$

$\Rightarrow A=7500{(1+\frac{2}{25})}^2$

$\Rightarrow A=7500\times \frac{27\times 27}{25\times 25}=12\times 729=Rs.8748$

Therefore,

Compound interest $=A-P=8748-7500=Rs.1248$