Question

Calculate compound interest on ₹1000 over a period of 1 year at 10% per annum if interest is compounded half yearly

Answer 1

$\huge\mathbb{Solution}}$

As interest is compounded half yearly so there will be 2 conversion periods in a year

So n= 2

Rate of interest for 6 months rate=

$\large\bold{= 1/2*10% =5%}}$

$\large\bold{ A = p (1 + r/100)^ n}}$

$\large\bold{ A = 1000 ( 1 + 5/100)^2}}$

$\large\bold{ = 1000 (105/100)^2}}$

[/tex]\large\bold{= ₹1102.50}}[/tex]

Compound interest=$\Large\bold{A-p = 1102.50-1000= ₹102.50}}$

Answer 2

Answer:

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your answer is here !

Explanation:

One year = 4 quarters

A=1000(1+(10/4)/100)^4

=1000(1+5/2*1/100)^4

=1000(1+1/40)^4

=1000(41/40)^4

=1000*2825761m/2560000

1*2825761/2560=1103.81

Ci=a:-P=1103.81-1000

=103.81 rupoees.

=103.81 rupoees.Hope I helped u

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