Q. 74.0( 25 Votes )

Divakaran deposited a sum of Rs. 6250 in the Allahabad Bank for 1 year, compounded half-yearly at 8% per annum. Find the compound interest he gets.

Answer :

Present value = Rs.6250


Interest rate = 8 % per annum


Time = 1 years


Interest is compounded half-yearly.


Amount (A) = P [1 + (R/2)/100]2n [Where, P = Present value


R = Annual interest rate


n = Time in years]


A = 6250 [1 + (8/2)/100]2


A = 6250 [1 + 4/100]2


A = 6250 [26/25]2


A = 6250 × 26/25 × 26/25


A = 10 × 26 × 26


A = 6760


Amount = Rs.6760


Compound interest = Rs.(6760 – 6250)


= Rs.510


Divakaran gets a CI of Rs.510.


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