Calculate the amount and compound interest on:

(d) Rs 8000 for 1 year at 9% per annum compounded half yearly.   (You could use the year by year calculation using SI formula to verify)

Answers (1)
H Harsh Kankaria

Given,

Principal,P =Rs.8000,  Rate, R =   9% per annum compounded half yearly for 1 year. 

Now, There are two half years in a year. Therefore compounding has to be 2 times. 

And rate = half of 9% = 4.5% half yearly.

Therefore, the required amount = 8000(1+\frac{9}{2\times100})^{2}  = Rs. 8736.20

And Compound Interest, CI = Amount - Principal = Rs. (8736.20 - 8000) = Rs. 736.20

 

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