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=

1/2*10% =5%

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

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

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

$\large\bold{= 1102.50}}$

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