Question

Rahul deposited a sum of Rs.32500 in the bank for 2 years, compounded half yearly at 12% per annum. Find the compound interest he earns.

Answer 1

Answer:

The compound interest earn for amount deposited in bank is Rs 8,530.275

Step-by-step explanation:

Given as :

The principal deposited in account = p =Rs 32,500

The rate of interest = r= 12% compounded half yearly

The time period = t = 2 years

let The Amount after 2 years = Rs A

Let The compound interest earn = C.I

Now, From Compound Interest method

Amount = Principal × $(1+\dfrac{\textrm rate}{2\times 100})^{\extrm time\times 2}$

or, A = p × $(1+\dfrac{\textrm r}{2\times 100})^{\extrm t\times 2}$

Or, A = Rs 32,500 × $(1+\dfrac{\textrm 12}{2\times 100})^{\extrm 2\times 2}$

Or, A = Rs 32,500 × $(1.06)^{4}$

Or, A = Rs 32,500 × 1.26247

∴  A = Rs 41030.275

So,The Amount after 2 years = A = Rs 41030.275

Now, Again

Compound Interest =  Amount - Principal

C.I =  A - p

Or, C.I = Rs 41030.275 - Rs 32,500

∴ C.I = Rs 8,530.275

So,The compound interest earn = C.I =  Rs 8,530.275

Hence, The compound interest earn for amount deposited in bank is Rs 8,530.275   Answer