Question

Calculate the amount received on 10,000 at 5% p.a. compounded semi-annually for two years.​

Answer 1

Step-by-step explanation:

Here P=10,000 Rs.,

n=2(1

2

1

)=3 years(Compounded semi-annually) and R=

2

5

(Compounded semi-annually)

Amount(A)=P(1+

100

R

)

n

=5000(1+

2×100

5

)

3

=5000(

40

41

)

3

=

40×40×40

5000×(41)

3

=10,768.90 Rs.

Compound interest(C.I)=A−P=10,768.90−10,000=768.90

Hence, the compound interest is Rs. 769.