Question

100 for 1 year at 10% per annum compounded half yearly

Answer 1

If the principal = P, rate of interest per unit time = r2%, number of units of time = 2n, the amount = A and the compound interest = CI

Then

A = P(1 + r2100)2n

Here, the rate percent is divided by 2 and the number of years is multiplied by 2

Therefore, CI = A - P = P{(1 + r2100)2n - 1}