1.

The compound interest on ₹ 8000 at 10% p.a for 1 year, compounded half yearly is …………

Answer»

₹ 820

Compound interest (CI) = Amount – Principal

∴ Amount = P (1 + r/100)2n [2n as it is compounded half yearly]

r = 10% p.a, for half yearly r = 1 + 10/2 = 5

A = 8000 (1 + 5/100)2×1 

= 8000 x (105/100)2 = 8820

CI = Amount – principal

= 8820 – 8000 

= ₹ 820



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