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Class 8 Comparing Quantities
Calculate the amount and compound interest on :
Rs8000 for 1 year at 9% per annum compounded half yearly .
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1 Reply
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To calculate the amount and compound interest on Rs8000 for 1 year at a compound interest rate of 9% per annum, compounded half-yearly, we need to use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where: A = Total amount after interest P = Principal amount (initial investment) r = Annual interest rate (in decimal form) n = Number of times the interest is compounded per year t = Time in years
Given: P = Rs8000 r = 9% per annum (or 0.09 as a decimal) n = 2 (compounded half-yearly) t = 1 year
Let’s calculate the amount and compound interest step by step:
First, let’s calculate the compound interest (CI):
CI = A – P
To find A, we use the compound interest formula:
A = P(1 + r/n)^(nt)
A = Rs8000(1 + 0.09/2)^(2*1)
A = Rs8000(1 + 0.045)^2
A = Rs8000(1.045)^2
A = Rs8000(1.092025)
A = Rs8736.20 (rounded to two decimal places)
Now, let’s calculate the compound interest (CI):
CI = A – P
CI = Rs8736.20 – Rs8000
CI = Rs736.20
Therefore, the total amount after 1 year will be Rs8736.20, and the compound interest earned will be Rs736.20.