Share

# Calculate the Amount and Compound Interest On Rs 10000 for 1 Year at 8% per Annum Compounded Half Yearly. - Mathematics

Course

#### Question

Calculate the amount and compound interest on Rs 10000 for 1 year at 8% per annum compounded half yearly.

#### Solution

Principal (P) = Rs 10,000

Rate = 8% per annum or 4% per half year

Number of years = 1 year

There are 2 half years in 1 year.

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

= Rs [10000(1 + 4/100)^2] = Rs [10000(1 + 4/100)^2] = Rs [10000(1 + 1/25)^2]

= Rs (10000 xx 26/25 xx 26/25)

= Rs 10816

C.I. = A − P = Rs 10816 − Rs 10000 = Rs 816

Is there an error in this question or solution?