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Calculate the amount and compound interest on Rs 62,500 for 11/2 years at 8% per annum compounded half yearly
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Calculate the amount and compound interest on Rs 62,500 for 11/2 years...
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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.
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Calculate the amount and compound interest on Rs 62,500 for 11/2 years at 8% per annum compounded half yearly
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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.
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