Question
A sum of ₹9,800 was invested for a year at 10%
interest per annum, compounded half-yearly. What would be the interest payable at the end of the year?Solution
Sum =9800 Rs. Rate =10% per annum. =5% half yearly. Time =1 year =2 half yearly. Compound interest =P(1+r/100) t -(P) =9800(1+5/100)2 -9800 = (9800×441/400)-9800 =10804.5 -9800 =1004.5 Rs.
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