Question

Find the amount and the compound interest on Rs. 10,000 at 8 per cent per annum and in 1 year; interest being compounded half-yearly.

• A. Rs. 816
• B. Rs. 214
• C. Rs. 719
• D. None of these

Answer 1

Answer: (A)

Rs. 816

P=Rs.10000,R=8% half-yearly=$\frac{8}{2}=4$%,T=1 year

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

$\Rightarrow 10000{(1+\frac{4}{100})}^2$

$\Rightarrow 10000\times \frac{104}{100}\times \frac{104}{100}$

$\Rightarrow Rs.10816$

$C.I=A-P$

$C.I=10816-10000=Rs.816$