Question

Find the amount and C.I. on Rs. 16000 for 2 years at 10% per annum
but compounded half yearly?​

Answer 1

Answer:

2522

Explanation:

It is calculated as under -

Interest rate per annum - 10%

No of rests per annum - 1 for annual, 2 for half year, 4 for Quarterly and 12 for monthly

Effective interest per rest - Per annum Interest rate divide by no of rest per annum - 10/2 = 5%

Rest Period in known time - 1–1/2 years / 6 months = 3

Interest = Principal x (1+Effective interest rate) raised to power 3 - Principal Amount

Or

16000 x 1.05 x 1,05 x 1,05 - 16000 = 2522

Answer 2

Answer

The above answer is wrong because there are 4 SIX MONTHS IN 2 YEARS.

Means 2 Six months make a year therefore, there will be 4 SIX MONTHS in 2 years.

hope it's help u :-)