Calculate the amount and compound interest on Rs 8000 for 1 year at 9% per annum compound half yearly. (You could use the year by year calculation using SI formula to verify)

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1 Answers

Principal (P) = Rs 8000

Rate of interest = 9% per annum or 9/2 % per half year 

Number of years = 1 year

There will be 2 half years in 1 year.

A = p( 1 + R/100)n

= Rs [800 (1 + 9/200)2]

= Rs [8000 (209/200)2

= Rs (8000 x 209/200 x 209/200) = Rs 8736.20

C.I. = A − P = Rs 8736.20 − Rs 8000 = Rs 736.20

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