Question

Find the compounded interest on Rs. $5000$ for $1$ year $8\%$ per annum, compounded half-yearly.

Answer 1

Given, Pricnipal$=$Rs. $5000$

Rate $=8\%$

Time $=1$ year, $⟹n=2\because$ Compounded half-yearly

$A=P{(1+\frac{r}{2.100})}^n$

$A=5000{(1+\frac{8}{200})}^2$

$A=5000\left(\frac{208}{200}\right)\left(\frac{208}{200}\right)$

$A=5408$

$C.I=A-P$

$=5408-5000$

$=408$

$C.I.=408$.