Find the compound interest on ₹19,375 in 1 year at 8% per annum, the interest being compounded half-yearly.
₹1,581
Compound Interest is calculated using the formula:
A = P(1 + r/n)nt
where P = ₹19,375, r = 8% = 0.08, n = 2 (compounded half-yearly), and t = 1 year.
A = 19,375 × (1 + 0.08/2)2×1 = 19,375 × (1 + 0.04)2 = 19,375 × (1.04)2 = 19,375 × 1.0816 = ₹20,937.50.
Therefore, Compound Interest = A - P = ₹20,937.50 - ₹19,375 = ₹1,581.
Important Questions from Compound Interest
The certain sum amounts to Rs. 9,982.50 in \(2\frac{1}{2}\) years at 12% p.a., interest compounded 10-monthly. The sum (in Rs.) is:
The difference between the simple interest and the compound interest compounded annually on a certain sum of money for 2 years at a rate of 8% per annum is Rs. 16.80. Find the principle amount.
If a sum of ₹ 2000 is lent at 10% p.a. compound interest, what is the interest for the second year?
A sum becomes 5 times of itself in 3 years. at compound interest (interest is compounded annually). In how many years. will the sum becomes 125 times of itself?
If the compound interest on a certain sum of money for two years at 9% p.a. is Rs. 3,762, then the sum is:
