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Calculate the Amount and Compound Interest On Rs 8000 for 1 Year at 9% per Annum Compound Half Yearly. (You Could Use the Year by Year Calculation Using Si Formula to Verify)

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Question

Calculate the amount and compound interest on Rs 8000 for 1 year at 9% per annum compound half yearly. (You could use the year by year calculation using SI formula to verify)

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Solution

Principal (P) = Rs 8000

Rate of interest = 9% per annum or  `9/2` % per half year

Number of years = 1 year

There will be 2 half years in 1 year.

`A = P(1 + R/100)^n`

= `Rs [8000(1 + 9/200)^2]`

= Rs `[8000(209/200)^2] =  Rs  8736.20`

C.I. = A − P = Rs 8736.20 − Rs 8000 = Rs 736.20

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