Question

Question 35

The compound interest on Rs 8000 for one year at 16% per annum compounded half-yearly is___ , given that $(1.08{)}^2$ = 1.1664.

Answer 1

Given, principal (P) = Rs 8000
Time period (T) =1 yr
Rate (R) = 16% per annum compounded half-yearly
We know that,
Amount, when interest os compounded half - yearly,
$A=P{(1+\frac{R}{200})}^{2T}$
$\Rightarrow A=8000{(1+\frac{16}{200})}^{2\times 1}$
$\Rightarrow A=8000{\left(\frac{27}{25}\right)}^2$
$\Rightarrow A=8000\left(1.08{)}^2\right)$
$\therefore Amount,A=Rs.9331.5$
$\because$ Compound interest. CI = A - P
= Rs 9331.2 - Rs 8000 = Rs 1331.2