find the compound interest on 10000 for 2 and half years at 5%per annum compounded annually
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Interest for half years on 11000 =
\frac{P\times R\times T}{100}
=\frac{11000\times 10\times \frac{1}{2}}{100}
= 55\times 10T= 1\frac{1}{2} years ,n=1
A= P\left ( 1+\frac{R}{100} \right )^{n}
A= 10000\left ( 1+\frac{10}{100} \right )^{1}
A= 10000\left ( 1+0.1\right )^{1}
A= 10000\left ( 1.1\right )^{1}
A= 11000 = Amount
CI = Amount - principal
CI = 11000-10000
CI = 1000
= 550
Total interest = 1000+550
= RS 1550
Since 1576.25 > 1000
Thus, interest would be more in CASE 1 i.e. compounded half yearly
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