Question

Find the compound interest on rs 1000 at the rate of 4% per annum for one year when interest is compounded half yearly

Answer 1

Answer:

$compound \: interest = \\ 1000 \times (1 + \frac{4}{200} ) {}^{2} - 1000 = \\ 1000 \times \frac{51}{50} \times \frac{51}{50} - 1000 = \\ 1040.4 - 1000 = 40.4$