Question

Find the Compound Interest on Rs.5000 in 2 years at 10 % per annum compounded half yearly

Answer 1

Answer:

$2320.5

Step-by-step explanation:

We need to calculate the Compound interest

Formula of Compound interest (CI): CI = A - P  ⇒  A is Total amount

                                                                                  P is Principal deposit

Principal deposit is Rs. 5000 but we dont know the Total amount

Formula for Total amount (A):  $A=P(1+r/100)^{n}$  ⇒  r is annual rate

                                                                                       n is number of years

                                                    Since it is half yearly n will be 2n

So

$A=P(1+r/100)^{2n}\\A=5000(1+10/100)^{2*2}\\A=5000(1+0.1)^{4}\\A=5000(1.1)^{4}\\A=5000*1.4641\\A=Rs.7320.5$

So Compound interest will be A - P

                                                  7320.5 - 5000

                                                  $2320.5

Answer 2

Answer:

$2320.5

Step-by-step explanation:

We need to calculate the Compound interest

Formula of Compound interest (CI): CI = A - P  ⇒  A is Total amount

                                                                                 P is Principal deposit

Principal deposit is Rs. 5000 but we dont know the Total amount

Formula for Total amount (A):    ⇒  r is annual rate

                                                                                      n is number of years

                                                   Since it is half yearly n will be 2n

So

So Compound interest will be A - P

                                                 7320.5 - 5000

                                                 $2320.5

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