Question

Find the compound interest on Rs. 50,000 for 5 years at the rate of 10% per annum, when the interest is compounded semi-annually

Answer 1

Answer:

Principal, P =Rs.50000, Rate, R = 10% per annum compounded half-yearly for 1 year.

Now, there are two half years in a year. Therefore compounding has to be 2 times.

And rate = half of 10% = 5% half yearly.

Therefore, the required amount =  = Rs 55125

And Compound Interest, C.I. = Amount - Principal

                                              = Rs. (55125 - 50000)

                                             = Rs. 5125

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