Question

Find the interest on $Rs.8000$ for $1$ year at $9\%$ per annum compound half yearly.

Answer 1

Given that, $P=Rs8000$,
$n=2$ (no. of times interest added in the given year) and $R=9$%

For compounded half yearly, we have

$A=P(1+\frac{R}{200}{)}^2$

$A=8000(1+4.5/200{)}^2$

$A=8000\times \left(\frac{204.5}{200}\right)\times \left(\frac{204.5}{200}\right)$

$A=Rs8364.05$

$\therefore$ $I=A-P$
Interest, $I=Rs8364.05-8000=Rs.364.05$