Answer:
Rs 816
Step-by-step explanation:
For the above question, the formula to use is given as:
Amount = P( 1 + r/n)^nt
Given, P = 10,000
r = 8% = 0.08
n = 2 = semi annually
t = 1 year
Amount = 10,000( 1 + 0.08/2)^2×1
Amount = 10,000( 1 + 0.04)²
= 10,000(1.04)²
= 10,000(1.0816)
= 10,816
Hence, Interest is calculated as
Amount - Principal
interest = Rs. 10,816 − Rs. 10000
= Rs. 816
Hence, interest paid at the time of maturity is Rs. 816.
