find the compound interest on 3000 for 2 years at the rate of 20 % per annum if the interest is compound half yearly.
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We know the formula,
A=P(1+
n
r
)
n.t
Where,
A= total amount
P= principal or amount of money deposited,
r= annual interest rate
n= number of times compounded per year
t= time in years
Given:
P= Rs. 3000,r=8%,n=4 and t=2 years
A=3000(1+
4
0.08
)
4×2
A=3000×1.02
8
A=3000×1.171659
A= Rs. 3514.98
To find interest we use formula A=P+I, since A=3514.98 and P=3000, we have:
A=P+I
⇒3514.98=3000+I
⇒I=3514.98−3000=514.98
Interest, I= Rs. 514.98
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