Question
Find the compound interest on Rs. 8500 in 2 years at 8%
per annum, the interest being compounded half-yearly.Solution
Interest is compounded half-yearly, the formula is: Amount = P [1 + (R/2)/100]2n According to the question, => Amount = Rs. [8500 × (1 + 4/100)4] => A = (8500 × 104/100 × 104/100 × 104/100 × 104/100) => A = Rs. 9943.79 Therefore, C.I = Rs. (9943.79 - 8500) = Rs. 1443.79
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