Find the compound interest and the total amount after three years if the interest is compounded half-yearly.
Principal = ₹102
Rate of interest = 100 percent per annum
1 thought on “Find the compound interest and the total amount after three years if the interest is compounded half-yearly.<br />
Principal = ₹10”
Solution!!
The concept of compound interest has to be used here. The principal, rate of interest and time is given in the question. We are asked to calculate the compound interest and amount.
Solution!!
The concept of compound interest has to be used here. The principal, rate of interest and time is given in the question. We are asked to calculate the compound interest and amount.
Principal = Rs 102
Rate of interest = 100%
Time = 3 years
Amount = P(1 + (R/2)/100)²ⁿ
Amount = 102(1 + (100/2)/100))⁶
Amount = 102(1 + 50/100)⁶
Amount = 102(1+1/2)⁶
Amount = 102(3/2)⁶
Amount = 37179/32
Amount ≈ Rs 1161.84
CI = Amount – Principal
CI ≈ Rs 1161.84 – Rs 102
CI ≈ Rs 1059.84
Abbreviations used:-
P → Principal
R → Rate of interest
n → Time
CI → Compound interest