Question

find amount
rupees-20,000 for 2years at 5% when compounded half yearly.​

Answer 1

Explanation:

Interest is compounded half-yearly,

therefore,

Amount = P ( 1 + (R/2) /100 )2n ( half yearly)

Given :

Principal = Rs. 20000,

Rate = 2.5 % per half-year,

Time = 2 years = 4 half- years

Amount = 20000 [ 1 + 2.5/ 100 ]4

Amount =Rs 320

Compound Interest = Total amount – Principal

= 20000-320

= Rs. 19,680