Compound Interest

Rita Lamichhane

Student

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If principal = Rs 1,00,000. rate of interest = 10% compounded half-yearly. Find

(i) Interest for 6 months.

(ii) Amount after 6 months.

(iii) Interest for the next 6 months.

(iv) Amount after one year.

  • 23 Dec, 2023
Replies (4)
Vidhyamath Online

Instructor

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Solution:

Given,

P = Rs 1,00,000

R = 10%

(i) A = P[1 + (R/200)]2T

Here, 2T is the number of half years.

Let us find the interest compounded half-yearly for 6 months, i.e., one half year.

So, A = Rs. 1,00,000 [1 + (10/200)]1

= Rs. 1,00,000 [(20 + 1)/20]

= Rs. 1,00,000 × 21/20

= Rs. 1,05,000

Compounded interest for 6 months = Rs. 1,05,000 – Rs. 1,00,000 = Rs. 5000

(ii) Amount after 6 months = Rs. 1,05,000

(iii) To find the interest for the next 6 months, we should consider the principal amount as Rs. 1,05,000.

Thus, A = Rs. 1,05,000 [1 + (10/200)]1

= Rs. 1,05,000 × (21/20)

= Rs. 1,10,250

Compound interest for next 6 months = Rs. 1,10,250 – Rs. 1,05,000 = Rs. 5250

(iv) Amount after one year = Rs. 1,10,250


:) Happy Learning

  • 23 Dec, 2023

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