Question

2. Find the compound interest for the given principal, rate and time when compounded half-yearly.

P = 20,000, R = 10% pa, T = 2 years​

Answer 1

Amount , when compounded half-yearly =

P(1+R/200)²n

=> A = 20000 ( 1 + 10/200 )²×²

=> A = 20000 × 21/20 × 21/20 × 21/20 × 21/20

=> A = 194481 ÷ 8

=> A = 24310.125

=> CI = A - P

=> CI = 24310.125 - 20000

=> CI = ₹4,310.125