Mathematics
Find the amount and the compound interest on ₹50000 for years at 8% per annum, the interest being compounded semi-annually.
Compound Interest
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Answer
Since, the rate of interest is 8% per annum, therefore, the rate of interest half-yearly = of 8% = 4%.
Principal for first half-year = ₹50000.
Interest for first half-year = = ₹2000.
Amount after first half-year = ₹50000 + ₹2000 = ₹52000.
Principal for second half-year = ₹52000.
Interest for the second half-year = = ₹2080.
Amount after one year = ₹52000 + ₹2080 = ₹54080.
Principal for third half-year = ₹54080.
Interest for the third half-year = = ₹2163.20
Amount after year = ₹54080 + ₹2163.20 = ₹56243.20
Compound interest for year = Final amount - principal = ₹56243.20 - ₹50000 = ₹6243.20
Hence, the amount and the compound interest on ₹50000 for years at 8% per annum, the interest being compounded semi-annually are ₹56243.20 and ₹6243.20 respectively.
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