Question

compute C.I on 2500 for 1 year at 12%
Compounded Six monthly​

Answer 1

Given :-

• Principal = Rs.2500
• Time = 1 year.
• Rate = 12% compounded six monthly .

To Find :-

• compound interest ?

Solution :-

When rate is compounded six monthly or semi - annually,

• Time is Multiply by 2.
• Rate is Divided by 2 .

So,

→ Rate = (12/2) = 6% compounded Annually .

→ Time = 1 * 2 = 2 years.

Now, we know that, when rate is compounded Annually,

→ Amount = Principal[ 1 + (Rate/100)]^(Time)

Putting all values we get,

→ A = 2500[ 1 + (6/100)]²

→ A = 2500 * [ 1 + (3/50)]²

→ A = 2500 * (53/50)²

→ A = 2500 * (2809/2500)

→ A = Rs.2809

Therefore,

→ Compound Interest = Amount - Principal

→ CI = 2809 - 2500

→ CI = Rs.309 (Ans.)