Question

Find the amount of rupees 8000 in 1 1/2 yesr at 5% per annum compound interest payable half yearly

Answer 1

To find the amount of rupees 8000 in 1 1/2 years at 5% per annum compound interest payable half yearly, we can calculate the interest for each half-year period and then add it to the principal. The amount is Rs. 9261.

Step-by-step explanation:

To find the amount of rupees 8000 in 1 1/2 years at 5% per annum compound interest payable half yearly, we can use the compound interest formula:

1. First, convert the time in years to the number of half-year periods by multiplying 1 1/2 years by 2, which gives us 3 periods.
2. Next, calculate the interest for each half-year period using the formula: Interest = Principal × (1 + rate) number of periods - Principal.
3. Now, find the amount by adding the principal to the total interest: Amount = Principal + Total Interest.

Plugging in the values, we get:

1. Principal = Rs. 8000
2. Rate = 5% / 100 = 0.05
3. Number of periods = 3

Calculating the interest for each half-year period:

1. First half-year: Rs. 8000 × (1 + 0.05)1 - Rs. 8000 = Rs. 400
2. Second half-year: Rs. 8000 × (1 + 0.05)2 - Rs. 8000 = Rs. 420
3. Third half-year: Rs. 8000 × (1 + 0.05)3 - Rs. 8000 = Rs. 441

Finally, finding the amount:

1. Amount = Rs. 8000 + Rs. 400 + Rs. 420 + Rs. 441 = Rs. 9261

Therefore, the amount of rupees 8000 in 1 1/2 years at 5% per annum compound interest payable half yearly is Rs. 9261.