Class 8 Exam > Class 8 Questions > Calculate the amount and compound interest on...
Start Learning for Free
Calculate the amount and compound interest on Rs 62,500 for 11/2 years at 8% per annum compounded half yearly
Verified Answer
Calculate the amount and compound interest on Rs 62,500 for 11/2 years...
This question is part of UPSC exam. View all Class 8 courses
Most Upvoted Answer
Calculate the amount and compound interest on Rs 62,500 for 11/2 years...
Introduction
To calculate the compound interest and the total amount for Rs 62,500 at an interest rate of 8% per annum, compounded half-yearly for 1.5 years, follow these steps:
Step 1: Identify Variables
- Principal (P): Rs 62,500
- Rate (R): 8% per annum
- Time (T): 1.5 years
- Compounding Frequency (n): 2 times a year (half-yearly)
Step 2: Convert Time into Half-Year Periods
- Total compounding periods (n × T):
- T = 1.5 years = 3 half-year periods
Step 3: Adjust the Interest Rate
- Effective Rate per period:
- R/n = 8% / 2 = 4% per half-year
Step 4: Apply the Compound Interest Formula
The compound interest formula is:
- A = P (1 + r/n)^(nt)
Where:
- A = Total Amount after time T
- r = Annual interest rate (as a decimal)
Step 5: Calculate Total Amount (A)
- A = 62500 × (1 + 0.04)^(3)
- A = 62500 × (1.04)^3
- A = 62500 × 1.124864
- A ≈ Rs 70,303.99
Step 6: Calculate Compound Interest (CI)
- CI = A - P
- CI = 70,303.99 - 62,500
- CI ≈ Rs 7,803.99
Conclusion
- Total Amount (A): Rs 70,303.99
- Compound Interest (CI): Rs 7,803.99
This calculation shows that after 1.5 years, the investment would grow significantly due to compound interest.
To calculate the compound interest and the total amount for Rs 62,500 at an interest rate of 8% per annum, compounded half-yearly for 1.5 years, follow these steps:
Step 1: Identify Variables
- Principal (P): Rs 62,500
- Rate (R): 8% per annum
- Time (T): 1.5 years
- Compounding Frequency (n): 2 times a year (half-yearly)
Step 2: Convert Time into Half-Year Periods
- Total compounding periods (n × T):
- T = 1.5 years = 3 half-year periods
Step 3: Adjust the Interest Rate
- Effective Rate per period:
- R/n = 8% / 2 = 4% per half-year
Step 4: Apply the Compound Interest Formula
The compound interest formula is:
- A = P (1 + r/n)^(nt)
Where:
- A = Total Amount after time T
- r = Annual interest rate (as a decimal)
Step 5: Calculate Total Amount (A)
- A = 62500 × (1 + 0.04)^(3)
- A = 62500 × (1.04)^3
- A = 62500 × 1.124864
- A ≈ Rs 70,303.99
Step 6: Calculate Compound Interest (CI)
- CI = A - P
- CI = 70,303.99 - 62,500
- CI ≈ Rs 7,803.99
Conclusion
- Total Amount (A): Rs 70,303.99
- Compound Interest (CI): Rs 7,803.99
This calculation shows that after 1.5 years, the investment would grow significantly due to compound interest.
Attention Class 8 Students!
To make sure you are not studying endlessly, EduRev has designed Class 8 study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Class 8.
|
|
Explore Courses for Class 8 exam
|
|
Similar Class 8 Doubts
Top Courses for Class 8View all
Calculate the amount and compound interest on Rs 62,500 for 11/2 years at 8% per annum compounded half yearly
Question Description
Calculate the amount and compound interest on Rs 62,500 for 11/2 years at 8% per annum compounded half yearly 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 Calculate the amount and compound interest on Rs 62,500 for 11/2 years at 8% per annum compounded half yearly covers all topics & solutions for Class 8 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Calculate the amount and compound interest on Rs 62,500 for 11/2 years at 8% per annum compounded half yearly.
Calculate the amount and compound interest on Rs 62,500 for 11/2 years at 8% per annum compounded half yearly 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 Calculate the amount and compound interest on Rs 62,500 for 11/2 years at 8% per annum compounded half yearly covers all topics & solutions for Class 8 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Calculate the amount and compound interest on Rs 62,500 for 11/2 years at 8% per annum compounded half yearly.
Solutions for Calculate the amount and compound interest on Rs 62,500 for 11/2 years at 8% per annum compounded half yearly in English & in Hindi are available as part of our courses for Class 8.
Download more important topics, notes, lectures and mock test series for Class 8 Exam by signing up for free.
Here you can find the meaning of Calculate the amount and compound interest on Rs 62,500 for 11/2 years at 8% per annum compounded half yearly defined & explained in the simplest way possible. Besides giving the explanation of
Calculate the amount and compound interest on Rs 62,500 for 11/2 years at 8% per annum compounded half yearly, a detailed solution for Calculate the amount and compound interest on Rs 62,500 for 11/2 years at 8% per annum compounded half yearly has been provided alongside types of Calculate the amount and compound interest on Rs 62,500 for 11/2 years at 8% per annum compounded half yearly theory, EduRev gives you an
ample number of questions to practice Calculate the amount and compound interest on Rs 62,500 for 11/2 years at 8% per annum compounded half yearly tests, examples and also practice Class 8 tests.
|
|
Explore Courses for Class 8 exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup