The compound interest on Rs 8,000 for one year at 16% p.a. compounded half yearly is ______, given that (1.08)^2 = 1.1664.

Question

Fill in the blanks to make the statement true.

The compound interest on Rs 8,000 for one year at 16% p.a. compounded half yearly is ______, given that (1.08)² = 1.1664.

Answer 1

Rs. 9331.2

Explanation: 

Principal = Rs.8000

Time period = 1 year

Rate = 16% = 16/100 = 0.16

Amount = P ( 1+r/n)^nt

n = 2 (compounded half yearly in a year)

A = 8000(1+0.16/2)^2×1 

= 8000 (1+0.08)² 

= 8000 (1.08)²

A = 8000 × 1.1664

A = 9331.2