Question

Find the amount and the compound interest on $Rs7400$ for $1$ year at $5\%$ per annum interest payable half yearly.

Answer 1

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

where, R=rate % = 5

n=Number of times interest is compounded per year=2 (as it is compounded twice a year)

t=number of years=1

$Interest=A-P=7400(1+\frac{\frac{5}{2}}{100}{)}^2-7400=(\frac{205}{200}{)}^{2}7400-7400=\frac{42025-40000}{40000}\ast 7400=\frac{2025}{40000}\ast 7400=374.625$

Total Amount $=7400+374.625=7774.625$