Question

Find the compound interest on ₹ 50,000 for 2 years at 5% per annum when compounded half yearly​

Answer 1

Answer

It is given that

Principal (P) = 50000

Rate of interest (r) = 8% p.a. = 4% semi-annually

Period (n)= 1

2

1

years = 3 semi-annually

We know that

Amount = P(1+r/100)

n

Substituting the values

= 50000(1+4/100)

3

By further calculation

= 50000(26/25)

3

= 50000×26/25×26/25×26/25

= 56243.20

Here

Compound interest = A - P

Substituting the values

= 56243.20−50000

= 6243.20☺

Answer 2

Answer:

principle=50000

time =2 years(half yearly

rate=5%pa

A=P(1+r/200) 2t

A=50000(1+5/200) 4

A=54121.608

compound interest =amount -principle

compound interest =4121.608