Given:
Present value= ₹ 8000
Interest rate= 10 % per annum
Time=1 year and compounded half yearly
To find the amount we have the formula,
Amount (A) = P (1+(R/100)2n
Where P is present value, r is rate of interest, n is time in years.
Now substituting the values in above formula we get,
∴ A = 8000 (1 + (10/2)/100)2
⇒ A = 8000 (1+5/100)2
⇒ A = 8000 (1+1/20)2
⇒ A = 8000 (21/20)2
⇒ A = 20 × 441
⇒ A = ₹ 8820
∴ Compound interest = A – P
= 8820 – 8000 = ₹ 820
