The compound interest on ₹ 6250 at 8% per annum for 1 year, compound

1.	The compound interest on ₹ 6250 at 8% per annum for 1 year, compounded half yearly, is(a) ₹ 500 (b) ₹ 510 (c) ₹ 550 (d) ₹ 512.50
Answer» (b) ₹ 510 Explanation: Present value= ₹ 6250 Interest rate= 8% per annum Time=1 year To find the amount we have the formula, Amount (A) = P (1+(R/100))²ⁿ Where P is present value, r is rate of interest, n is time in years. Now substituting the values in above formula we get, ∴ A = 6250 (1 + (8/2)/100)² ⇒ A = 6250 (1+4/100)² ⇒ A = 6250 (1+1/25)² ⇒ A = 6250 (26/25)² ⇒ A = 10 × 26 × 26 ⇒ A = ₹ 6760 ∴ Compound interest = A – P = 6760 – 6250 = ₹ 510

The compound interest on ₹ 6250 at 8% per annum for 1 year, compounded half yearly, is(a) ₹ 500 (b) ₹ 510 (c) ₹ 550 (d) ₹ 512.50

Answer»

(b) ₹ 510

Explanation:

Present value= ₹ 6250

Interest rate= 8% per annum

Time=1 year

To find the amount we have the formula,

Amount (A) = P (1+(R/100))²ⁿ

Where P is present value, r is rate of interest, n is time in years.

Now substituting the values in above formula we get,

∴ A = 6250 (1 + (8/2)/100)²

⇒ A = 6250 (1+4/100)²

⇒ A = 6250 (1+1/25)²

⇒ A = 6250 (26/25)²

⇒ A = 10 × 26 × 26

⇒ A = ₹ 6760

∴ Compound interest = A – P

= 6760 – 6250 = ₹ 510