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Class 11

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>>Accumulation with simple and compound interest

>>Find the amount and the compound interes

Question

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Find the amount and the compound interest on ₹ 8000 for 1 year at 10% per annum, compounded half-yearly.

Easy

Updated on : 2022-09-05

Solution

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Given:

Present value =₹8000

Interest rate =10% per annum

Time =1 year and compounded half-yearly

To 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 years.

Now substituting the values in above formula we get,

∴A=8000(1+(10/2)/100)

2

⇒A=8000(1+5/100)

2

⇒A=8000(1+1/20)

2

⇒A=8000(21/20)

2

⇒A=20×441

⇒A=₹ 8820

∴ Compound interest =A–P

=8820–8000=₹820