Question

Find the compound interest on Rs 40000 in 1 year at 4% per annum, if the
interest being compounded half yearly

Answer 1

Answer:

Amount after 1 year =

$40000 \times (1 + \frac{4}{200} ) {}^{2} = \\ 40000 \times {( \frac{51}{50}) }^{2} = \\ 40000 \times \frac{51}{50} \times \frac{51}{50} = 41616$

so Compound Interest = 41616 – 40000 = ₹ 1616

ans.