Question

Find the compound interest on rs.5000 at 12%per annum for 1 year, compounded half yearly

Answer 1

Hi. 

Good Question and Keep Progressing.

Here is your answer---

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Given---

Principal(P) = Rs. 5000
Rate(r%) =  12%
 Time(n) = 1 year.

According to the question, Interest is compounded half-yearly.

Using the Formula,
     
        A  = P [ 1 + r%/100]^2n    [Since, Interest is compounded Half-yearly]
        A  = 5000[ 1 + 12/100]^2(1)
        A  = 5000[ 112/100]^2
        A  = 5000[ 53/50]^2
        A  = Rs. 5618

Using the formula, 
 
         Amount =Compound Interest + Principal.
   
             5618 = Compound Interest + 5000

             Compound Interest = 5618 - 5000
 
              Compound Interest = Rs. 618

Thus, the Compound Interest is Rs. 618.

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Hope it helps.

Have a nice day.