question_answer

Find the compound interest on Rs. 48,000 for one year at 8% per annum when compounded half yearly.

Answer:

Principal (P) = Rs. 48,000

Rate (R) = 8% p.a.

Time (n) = 1 year

Interest is compounded half yearly

A = P \[{{\left( 1+\frac{R}{200} \right)}^{2n}}\]

\[=48000{{\left( 1+\frac{8}{200} \right)}^{2}}\]

\[=48000\times \frac{26}{25}\times \frac{26}{25}\]

\[=\text{ }76.8\times 26\times 26\]

= Rs. 51,916.80

Therefore, Compound Interest\[=\text{ }A\text{ }\text{ }P\]

= Rs. \[\left( 519,16.8048,000 \right)\]

= Rs. 3,916.80