Question

give example of compound interest and half yearly and annually interest​

Answer 1

Compounded Annually

$a = p(1 + \frac{r}{100} )^{2} \\ ci = a - p \\ ci = p(1 + \frac{r}{100} )^{n} - p$

Example :

Principal= Rs 50000

Rate = 8%

Time = 2 yrs

CI = A - P

CI = 50000 ( 1 + 8/100 )^2 - 50000

= 50000 ( 108/100 )^2 - 5000

= 50000 ( 27/25 )^2 - 50000

= 5000 ( 729/625 ) - 50000

= 58230 - 50000

= ₹ 8320

Compounded Semi-Annually :

$r = \frac{r}{2 } \\ t = t \times 2 \\ or \\ a = p(1 + \frac{r}{100 \times 2} )^{2n}$

Example :

Principal = ₹ 15000

Rate = 20%

= 20/2

= 10%

Time = 2 yrs

= 2 * 2

= 4

CI = A - P

CI = 15000 ( 1 + 10/ 100 )^ 4 - 15000

15000 ( 11/10 )^4 - 15000

43923/2 - 15000

21961.50 - 15000

= ₹ 6961.50

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