If the interest is compounded half yearly, then the compound interest on Rs. 10000 for 12 months at per annum is Rs. ____.

see full answer

Your Exam Success, Personally Taken Care Of

1:1 expert mentors customize learning to your strength and weaknesses – so you score higher in school , IIT JEE and NEET entrance exams.

An Intiative by Sri Chaitanya

(Unlock A.I Detailed Solution for FREE)

Best Courses for You

JEE

NEET

Foundation JEE

Foundation NEET

CBSE

Detailed Solution

Concept- The compound interest on Rs. 10000 for 12 months at

per annum is Rs. 1025.
We know that Amount Question Image

when interest is compounded once per year. But in this case, the interest is compounded every six months, thus the answer is time.

(years)

, rate

.
This indicates that interest is charged every six months. Thus, our method of determining interest will be
Question Image

TheQuestion states that the principal amount is Rs. 10,000, the time period is 12 months, the interest rate is per year, and the type of interest is half-yearly. The next step is to calculate the case's compound interest. We are aware that amount Question Image

where, is the time period, is the interest rate, and is the principal amount. But the nature of the interest—half-yearly—is stated in the query. the rate will therefore be

and time

.
It means that the man will get an interest of

after every six months
Total amount Question Image

We know that,

and

. So, on substituting these values in the formula of the total interest, we will get,
Question Image

=11025
Thus, the total amount = Rs. 11025 .
Now, compound interest

total amount

principal amount )

Hence, the correct answer is Rs. 1025.
Syllabus: CBSE

Watch 3-min video & get full concept clarity