Question

Find the compound interest on 1000 at 8% per annum for 6 months, compounded semi annually.​

Answer 1

$We \: know,</p><p></p><p>$

$p(1 + \frac{r}{100} )^{t}$

Rate has been halved because interest is compounded half yearly and for same reason time has been doubled.

Rate has been halved because interest is compounded half yearly and for same reason time has been doubled.Therefore

$= 10000(1 + \frac{4}{100})^{2}$

$= 10000 \times \frac{26}{25} \times \frac{26}{25}$

$= 10816$

[tex]So,\: interest \:is\: 10816−10000=\: Rs 816[/tex]