Question

# The compound interest on $$₹\ 6250$$ at $$8 \%$$ per annum for $$1$$ year, compounded half-yearly, is

A
₹ 500
B
₹ 510
C
₹ 550
D
₹ 512.50

Solution

## The correct option is B ₹ 510Given:Present value $$= ₹\ 6250$$Interest rate= $$8\ %$$ per annumTime $$=1$$ year compounded half-yearlyTo find the amount we have the formula,Amount $$(A) = P (1+(r/100))^n$$where $$P$$ is present value, $$r$$ is rate of interest, $$n$$ is time in yearsNow substituting the values in above formula we get,$$\therefore A = 6250 (1 +(8/2)/100)^2$$$$\Rightarrow A = 6250 (1+4/100)^2$$$$\Rightarrow A = 6250 (1+1/25)^2$$$$\Rightarrow A = 6250 (26/25)^2$$$$\Rightarrow A = 10 × 26 × 26$$$$\Rightarrow A = ₹\ 6760$$∴ Compound interest $$= A – P$$$$= 6760 – 6250 = ₹\ 510$$Mathematics

Suggest Corrections

0

Similar questions
View More

People also searched for
View More