Question

Find the amount and compound interest if P = Rs. 1000, R = 6% p.a. n= 1 year when the interest is
compounded half-yearly

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Answer 1

compound amount = P {1 + R/100}^N

as the amount compounded half - yearly so 6/2 = 3 is the rate

= 1000 { 1 + 3 / 100}^2

= 1000{103/100}^2

= (1000 X 103 X 103) / 100 X 100

= 103 X 103 / 10

= 1060.9

hence the amount = 1060.9

Interest = Amount - principal

=. 1060.9 - 1000

=. 60.9

=. 61 approximately