Question
Download Solution PDFCalculate the compound interest on Rs 16000 at 10% per annum for 2 years when compounded half yearly.
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFGiven:
Sum = Rs. 16000
Rate = 10%
Time = 2 year
Concept used:
When the rate is calculated half-yearly,
R becomes R/2.
T becomes 2T.a
Formula used:
A = P(1 + R/100)T
C.I. = A - P
Where,
A = Amount
P = Principal or Sum
T = Time
R = Rate
C.I. = Compound interest
Calculation:
The rate of interest is calculated half-yearly,
R = 5% and T = 4 years
A = P(1 + R/100)T
⇒ A = 16000 × (1 + 5/100)4
⇒ A = 16000 × (21/20)4
⇒ A = 19448.1
Compound interest = Amount - Principal = 19448.1 - 16000 = 3448.1
∴ The compound interest is Rs. 3448.1.
Last updated on Jan 29, 2025
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