Question

Rahul deposited a sum of Rs.32500 in the bank for 2 years, compounded half yearly at 12% per annum. Find the compound interest he earns.

Answer 1

The compound interest earn for amount deposited in bank is Rs 8,530.275

Explanation:

Given as :

The principal deposited in account = p =Rs 32,500

The rate of interest = r= 12% compounded half yearly

The time period = t = 2 years

let The Amount after 2 years = Rs A

Let The compound interest earn = C.I

Now, From Compound Interest method

Amount = Principal ×
`(1+(\textrm rate)/(2* 100))^(\extrm time* 2)`

or, A = p ×
`(1+(\textrm r)/(2* 100))^(\extrm t* 2)`

Or, A = Rs 32,500 ×
`(1+(\textrm 12)/(2* 100))^(\extrm 2* 2)`

Or, A = Rs 32,500 ×
`(1.06)^(4)`

Or, A = Rs 32,500 × 1.26247

∴ A = Rs 41030.275

So,The Amount after 2 years = A = Rs 41030.275

Now, Again

Compound Interest = Amount - Principal

C.I = A - p

Or, C.I = Rs 41030.275 - Rs 32,500

∴ C.I = Rs 8,530.275

So,The compound interest earn = C.I = Rs 8,530.275

Hence, The compound interest earn for amount deposited in bank is Rs 8,530.275 Answer