Question

Find the compound interest and the total amount after three years if the interest is compounded half-yearly.
Principal = ₹102
Rate of interest = 100 percent per annum

Answer 1

Solution!!

The concept of compound interest has to be used here. The principal, rate of interest and time is given in the question. We are asked to calculate the compound interest and amount.

Principal = Rs 102

Rate of interest = 100%

Time = 3 years

Amount = P(1 + (R/2)/100)²ⁿ

Amount = 102(1 + (100/2)/100))⁶

Amount = 102(1 + 50/100)⁶

Amount = 102(1+1/2)⁶

Amount = 102(3/2)⁶

Amount = 37179/32

Amount ≈ Rs 1161.84

CI = Amount - Principal

CI ≈ Rs 1161.84 - Rs 102

CI ≈ Rs 1059.84

Abbreviations used:-

P → Principal

R → Rate of interest

n → Time

CI → Compound interest