A person borrowed a sum of Rs. 8000 at the rate of 10% per annum compounded semi-annually. Find the amount and compound interest for a period of one year.

Explanation

Principal, P =Rs. 8000
Rate of interest, R=10%
Rate of interest per conversion period `=(1)/(2)xx10%=5%`
n=Number of conversion periods=2 `(because 1 " year" =2xx6` months)
Amount , `A=P(1+(R )/(100))^(n)`
`therefore A=8000(1+(5)/(100))^(2)=8000xx(441)/(400)=Rs. 8820`
C.I. =A-P= Rs. 8820-Rs. 8000=Rs. 820.