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What is the compound interest on Rs. 62500 for 1 1 2 years at 8% per annum compounded half yearly?
- a)Rs. 7804
- b)Rs. 7004
- c)Rs. 7204
- d)Rs. 7624
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
What is the compound interest on Rs. 62500 for 1 1 2 years at 8% per a...
We know 
∴
∴
then C.I. = 70304 – 62500 = 7804
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What is the compound interest on Rs. 62500 for 1 1 2 years at 8% per a...
Compound interest formula:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment/loan, including interest
P = the principal investment/loan amount (initial deposit)
r = annual interest rate (as a decimal)
n = number of times that interest is compounded per year
t = number of years the money is invested/borrowed for
Given:
Principal amount (P) = Rs. 62500
Rate of interest (r) = 8% per annum (0.08 as a decimal)
Time (t) = 1 1/2 years = 1.5 years
Compounding frequency (n) = half-yearly (2 times a year)
Step 1: Calculate the compound interest for each compounding period
Since the interest is compounded half-yearly, the number of compounding periods (nt) will be 1.5 * 2 = 3
Step 2: Calculate the future value (A) using the compound interest formula
A = P(1 + r/n)^(nt)
= 62500(1 + 0.08/2)^(2*3)
= 62500(1 + 0.04)^6
= 62500(1.04)^6
= 62500 * 1.26824
= 79390
Step 3: Calculate the compound interest by subtracting the principal amount from the future value
Compound Interest = A - P
= 79390 - 62500
= 16890
Therefore, the compound interest on Rs. 62500 for 1 1/2 years at 8% per annum compounded half-yearly is Rs. 16890.
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment/loan, including interest
P = the principal investment/loan amount (initial deposit)
r = annual interest rate (as a decimal)
n = number of times that interest is compounded per year
t = number of years the money is invested/borrowed for
Given:
Principal amount (P) = Rs. 62500
Rate of interest (r) = 8% per annum (0.08 as a decimal)
Time (t) = 1 1/2 years = 1.5 years
Compounding frequency (n) = half-yearly (2 times a year)
Step 1: Calculate the compound interest for each compounding period
Since the interest is compounded half-yearly, the number of compounding periods (nt) will be 1.5 * 2 = 3
Step 2: Calculate the future value (A) using the compound interest formula
A = P(1 + r/n)^(nt)
= 62500(1 + 0.08/2)^(2*3)
= 62500(1 + 0.04)^6
= 62500(1.04)^6
= 62500 * 1.26824
= 79390
Step 3: Calculate the compound interest by subtracting the principal amount from the future value
Compound Interest = A - P
= 79390 - 62500
= 16890
Therefore, the compound interest on Rs. 62500 for 1 1/2 years at 8% per annum compounded half-yearly is Rs. 16890.
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What is the compound interest on Rs. 62500 for 1 1 2 years at 8% per annum compounded half yearly?a)Rs. 7804b)Rs. 7004c)Rs. 7204d)Rs. 7624Correct answer is option 'A'. Can you explain this answer? for Class 8 2026 is part of Class 8 preparation. The Question and answers have been prepared according to the Class 8 exam syllabus. Information about What is the compound interest on Rs. 62500 for 1 1 2 years at 8% per annum compounded half yearly?a)Rs. 7804b)Rs. 7004c)Rs. 7204d)Rs. 7624Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Class 8 2026 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the compound interest on Rs. 62500 for 1 1 2 years at 8% per annum compounded half yearly?a)Rs. 7804b)Rs. 7004c)Rs. 7204d)Rs. 7624Correct answer is option 'A'. Can you explain this answer?.
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