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What is known: Principal, Time Period, and Rate of Interest What is unknown: Amount and Compound Interest (C.I.) Reasoning: A = P[1 + (r/100)]n P = ₹ 10,000 n = \(1{\Large\frac{1}{2}}\) years R = 10% p.a. compounded annually and half-yearly where , A = Amount, P = Principal, n = Time period and R = Rate percent For calculation of C.I. compounded half-yearly, we will take the Interest rate as 5% and n = 3 A = P[1 + (r/100)]n A = 10000[1 + (5/100)]3 A = 10000[1 + (1/20)]3 A = 10000 × (21/20)3 A = 10000 × (21/20) × (21/20) × (21/20) A = 10000 × (9261/8000) A = 5 × (9261/4) A = 11576.25 Interest earned at 10% p.a. compounded half-yearly = A - P = ₹ 11576.25 - ₹ 10000 = ₹ 1576.25 Now, let's find the interest when compounded annually at the same rate of interest. Hence, for 1 year R = 10% and n = 1 A = P[1 + (r/100)]n A = 10000[1 + (10/100)]1 A = 10000[1 + (1/10)] A = 10000 × (11/10) A = 11000 Now, for the remaining 1/2 year P = 11000, R = 5% A = P[1 + (r/100)]n A = 11000[1 + (5/100)] A = 11000[(105/100)] A = 11000 × 1.05 A = 11550 Thus, amount at the end of \(1{\Large\frac{1}{2}}\)when compounded annually = ₹ 11550 Thus, compound interest = ₹ 11550 - ₹ 10000 = ₹ 1550 Therefore, the interest will be less when compounded annually at the same rate. ☛ Check: NCERT Solutions for Class 8 Maths Chapter 8 Video Solution: Find the amount and the compound interest on ₹ 10,000 for \(1{\Large\frac{1}{2}}\) years at 10% per annum, compounded half yearly. Would this interest be more than the interest he would get if it was compounded annually?NCERT Solutions Class 8 Maths Chapter 8 Exercise 8.3 Question 8 Summary: The amount and the compound interest on ₹ 10,000 for \(1{\Large\frac{1}{2}}\) years at 10% per annum, compounded half-yearly is ₹ 11576.25 and ₹ 1576.25 respectively. The interest will be less when compounded annually at the same rate. ☛ Related Questions:
The compound interest on Rs $10000$ in $2$ years at $4%$ per annum being compounded half yearly is A. $Rs\text{ 832}\text{.24}$B. $Rs\text{ 828}\text{.82}$C. $Rs\text{ 824}\text{.32}$D. $Rs\text{ 912}\text{.86}$Answer Verified
Hint: First we recall the definition and formula of compound interest and then calculate the compound interest. The formula used to calculate the compound interest is Complete step by step answer: So, the correct answer is “Option C”. Note: Compound interest is interest on interest; it means compound interest is additional amount of interest to the principal sum. Before calculating compound interest students have to calculate the amount by using the formula and then subtract principal from amount. Students must read questions carefully about the compounding frequency i.e. interest compounded yearly, half-yearly, quarterly, monthly or weekly. The time period will be changed accordingly. What is the difference between the compound interest of 10000 for 2 years at 4% per annum compounded yearly and half yearly?So, the compound interest on Rs $10000$ in $2$ years at $4%$ per annum being compounded half yearly is $Rs. 824.32$. So, the correct answer is “Option C”.
What is compound interest a sum of Rs 10000 for 2 years at 10% per annum compounded annually?∴ The compound interest is Rs. 4884.
What would be the compound interest for Rs 10000 at 10% pa for 2 and 1/2 years?The amount and the compound interest on ₹ 10,000 for 112 1 1 2 years at 10% per annum, compounded half-yearly is ₹ 11576.25 and ₹ 1576.25 respectively.
What is the compound interest on rupees 10000 at 10% for 5 years?1,025. Was this answer helpful?
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