Question

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

Answer 1

Answer:

Rs.102.50

Explanation:

Principal (P)= Rs.1000

Time (T) = 1 year

Rate (R) = 10% compounded half yearly

Amount (A) = $P (1+R/100)^T$

A = $1000(1+10/200)^2$

A = $1000(21/20)^2$

A = 1000 x 21/20 x 21/20

A = Rs.1102.50

Hence, compound interest = Rs.(1102.50 - 1000) = Rs.102.50