Question

calculate the interest on Rs.20,000 at 20% per annum compounded half yearly for 1 and 1/2 years

Answer 1

Answer: Step-by-step explanation:

Answer 2

Answer:

Principal=Rs.20,000

Time =1 year compounded semi-annually

Rate=16%

As the interest is compounded semi-annually so the rate is divided by 2 and the time is multiply by 2

∴A=P(1+2×100R)T×2

⇒A=20,000(1+1008)2

⇒A=20,000×100108×100108

⇒A=2×108×108

⇒A=Rs.23328

∴C.I=23328−20000=Rs.3328