Find the amount and the compound interest on Rs 6000

Question:

Find the amount and the compound interest on Rs 6000 for 1 year at 10% per annum compounded half-yearly.

Solution:

Let the principal amount be $P=\mathrm{Rs} 6000$.

Rate of interest $=10 \%$ p. a. $=5 \%$ for half yearly

Time $(n)=1$ year $=2$ half years

Now, $\mathrm{A}=P \times\left(1+\frac{R}{100}\right)^{n}$

$=$ Rs $6000 \times\left(1+\frac{5}{100}\right)^{2}$

$=$ Rs $6000 \times\left(\frac{105}{100}\right)^{2}$

$=$ Rs $6000 \times\left(\frac{21}{20}\right) \times\left(\frac{21}{20}\right)$

$=$ Rs $(15 \times 21 \times 21)$

$=$ Rs 6615

$\therefore$ CI $=A-P=$ Rs $(6615-6000)=$ Rs 615

Hence, the amount is Rs 6615 and the CI is Rs 615 .

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