Question

Find the compound interest and the total amount after eight years if the interest is compounded every two years.
Principal
= 10,000
=20% per annum

Answer 1

Given,

Principal, P =Rs.10000, Rate, R = 8% per annum compounded half yearly for 1 year.

Now, There are two half years in a year. Therefore compounding has to be 2 times.

And rate = half of 10% = 5% half yearly.

Therefore, the required amount = 10000(1+\frac{4}{100})^{2} = Rs. 10816

And Compound Interest, C.I. = Amount - Principal = Rs. (10816 - 10000) = Rs. 816.