Find the amount of Rs. 6,250 at 8% per annum compounded annually for 2 years. Find the compound interest.

1 thought on “Find the amount of Rs. 6,250 at 8% per annum compounded annually for 2 years. Find the compound interest.”

1. Answer:

   Given:

   Present value =₹ 6250

   Interest rate= 8 % per annum

   Time =1 year compounded half-yearly

   To find the amount we have the formula,

   Amount (A)=P(1+(r/100))

   n

   where P is present value, r is rate of interest, n is time in years

   Now substituting the values in above formula we get,

   ∴A=6250(1+(8/2)/100)

   2

   ⇒A=6250(1+4/100)

   2

   ⇒A=6250(1+1/25)

   2

   ⇒A=6250(26/25)

   2

   ⇒A=10×26×26

   ⇒A=₹ 6760

   ∴ Compound interest =A–P

   =6760–6250=₹ 510.

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