Question

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

Answer 1

Answer:

The compound interest is roughly ₹5,190.64.

Step-by-step explanation:

Given:

• Principal (P) = ₹50,000

• Time (n) = 2 years

• Rate of interest (R) = 5%

To find:

Compound interest (C.I)

(compounded half-yearly)

Method to find:

To find the compound interest, we first need to find the amount (A).

A = P(1 + R/200)²ⁿ

⇒ A = 50,000 * (1 + 5/200)²*²

⇒ A = 50,000 * (41/40)⁴

⇒ A = (50,000 * 41 * 41 * 41 * 41)/(40 * 40 * 40 *40)

⇒ A = 55190.6445313 ≈ ₹55,190.64

Now that we have found the amount, we can find the compound interest (C.I).

C.I = A - P

⇒ C.I = ₹55,190.64 - ₹50,000

⇒ C.I = ₹5,190.64 (approx.)

Hope it helps!