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Find the amount and the compound interest on rupees 20000 for 1^1/2 years at 10%per annum compound half yearly. Would this interest be more than the interest if it was compound annually?
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Find the amount and the compound interest on rupees 20000 for 1^1/2 ye...
Calculating Compound Interest:
To calculate the compound interest, we need to use the formula:
A = P(1 + r/n)^(nt)
Where:
A = the total amount after interest
P = the principal amount (rupees 20000 in this case)
r = the annual interest rate (10% per annum)
n = the number of times interest is compounded per year (twice, as it is compounded half-yearly)
t = the number of years (1^1/2 years)
Calculating Compound Interest Half-Yearly:
Let's calculate the amount and compound interest when the interest is compounded half-yearly.
P = rupees 20000
r = 10% per annum (0.10)
n = 2 (compounded half-yearly)
t = 1^1/2 years (1.5 years)
Using the formula:
A = P(1 + r/n)^(nt)
A = 20000(1 + 0.10/2)^(2*1.5)
A = 20000(1 + 0.05)^3
A = 20000(1.05)^3
A = 20000(1.157625)
A = 23152.50
The total amount after 1^1/2 years with compound interest half-yearly is rupees 23152.50.
The compound interest is given by:
Compound Interest = A - P
Compound Interest = 23152.50 - 20000
Compound Interest = 3152.50
The compound interest on rupees 20000 for 1^1/2 years at 10% per annum compound half-yearly is rupees 3152.50.
Comparing with Compound Interest Annually:
Now, let's calculate the compound interest if it was compounded annually.
P = rupees 20000
r = 10% per annum (0.10)
n = 1 (compounded annually)
t = 1^1/2 years (1.5 years)
Using the same formula:
A = P(1 + r/n)^(nt)
A = 20000(1 + 0.10/1)^(1*1.5)
A = 20000(1 + 0.10)^1.5
A = 20000(1.10)^1.5
A = 20000(1.331)
A = 26620
The total amount after 1^1/2 years with compound interest annually is rupees 26620.
The compound interest is given by:
Compound Interest = A - P
Compound Interest = 26620 - 20000
Compound Interest = 6620
The compound interest on rupees 20000 for 1^1/2 years at 10% per annum compound annually is rupees 6620.
Comparison:
The compound interest when compounded half-yearly is rupees 3152.50, while the compound interest when compounded annually is rupees 6620.
Therefore, the interest is more when it is compounded annually compared to when it is compounded half-yearly.
Explanation:
When interest is compounded half-yearly, the interest is added twice a year. This means that the principal amount will grow at a faster rate compared
To calculate the compound interest, we need to use the formula:
A = P(1 + r/n)^(nt)
Where:
A = the total amount after interest
P = the principal amount (rupees 20000 in this case)
r = the annual interest rate (10% per annum)
n = the number of times interest is compounded per year (twice, as it is compounded half-yearly)
t = the number of years (1^1/2 years)
Calculating Compound Interest Half-Yearly:
Let's calculate the amount and compound interest when the interest is compounded half-yearly.
P = rupees 20000
r = 10% per annum (0.10)
n = 2 (compounded half-yearly)
t = 1^1/2 years (1.5 years)
Using the formula:
A = P(1 + r/n)^(nt)
A = 20000(1 + 0.10/2)^(2*1.5)
A = 20000(1 + 0.05)^3
A = 20000(1.05)^3
A = 20000(1.157625)
A = 23152.50
The total amount after 1^1/2 years with compound interest half-yearly is rupees 23152.50.
The compound interest is given by:
Compound Interest = A - P
Compound Interest = 23152.50 - 20000
Compound Interest = 3152.50
The compound interest on rupees 20000 for 1^1/2 years at 10% per annum compound half-yearly is rupees 3152.50.
Comparing with Compound Interest Annually:
Now, let's calculate the compound interest if it was compounded annually.
P = rupees 20000
r = 10% per annum (0.10)
n = 1 (compounded annually)
t = 1^1/2 years (1.5 years)
Using the same formula:
A = P(1 + r/n)^(nt)
A = 20000(1 + 0.10/1)^(1*1.5)
A = 20000(1 + 0.10)^1.5
A = 20000(1.10)^1.5
A = 20000(1.331)
A = 26620
The total amount after 1^1/2 years with compound interest annually is rupees 26620.
The compound interest is given by:
Compound Interest = A - P
Compound Interest = 26620 - 20000
Compound Interest = 6620
The compound interest on rupees 20000 for 1^1/2 years at 10% per annum compound annually is rupees 6620.
Comparison:
The compound interest when compounded half-yearly is rupees 3152.50, while the compound interest when compounded annually is rupees 6620.
Therefore, the interest is more when it is compounded annually compared to when it is compounded half-yearly.
Explanation:
When interest is compounded half-yearly, the interest is added twice a year. This means that the principal amount will grow at a faster rate compared
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Find the amount and the compound interest on rupees 20000 for 1^1/2 years at 10%per annum compound half yearly. Would this interest be more than the interest if it was compound annually?
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Find the amount and the compound interest on rupees 20000 for 1^1/2 years at 10%per annum compound half yearly. Would this interest be more than the interest if it was compound annually? for Class 8 2024 is part of Class 8 preparation. The Question and answers have been prepared according to the Class 8 exam syllabus. Information about Find the amount and the compound interest on rupees 20000 for 1^1/2 years at 10%per annum compound half yearly. Would this interest be more than the interest if it was compound annually? covers all topics & solutions for Class 8 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Find the amount and the compound interest on rupees 20000 for 1^1/2 years at 10%per annum compound half yearly. Would this interest be more than the interest if it was compound annually?.
Find the amount and the compound interest on rupees 20000 for 1^1/2 years at 10%per annum compound half yearly. Would this interest be more than the interest if it was compound annually? for Class 8 2024 is part of Class 8 preparation. The Question and answers have been prepared according to the Class 8 exam syllabus. Information about Find the amount and the compound interest on rupees 20000 for 1^1/2 years at 10%per annum compound half yearly. Would this interest be more than the interest if it was compound annually? covers all topics & solutions for Class 8 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Find the amount and the compound interest on rupees 20000 for 1^1/2 years at 10%per annum compound half yearly. Would this interest be more than the interest if it was compound annually?.
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