Calculate the amount and compound interest on: ₹ 62,500 for 1(1/2) % years at 8% per annum compounded annually.

Here, Principal (P) = ₹ 62500,
Time (n) = 1(1/2) = 3/2 years = 3 half-years (compounded half yearly)
Rate of interest (R) = 8% = 4% (compounded half yearly)
Amount (A) = P (1+R/100)ⁿ = 62500(1+4/100)² = 62500(1+1/25)³
= 62500 (26/25)³ = 62500 x 26/25 x 26/25 x 26/25 = ₹ 70,304
Compound Interest (C.I.) = A – P = ₹ 70304 – ₹ 62500 = ₹ 7,804

Class 8 Maths Chapter 8 Exercise 8.3 Solution in Video

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