Question

How much would a sum of ₹10,000 amount to in 1 year at 20% p.a. if the
interest is pounded half yearly?

Answer 1

Answer:

.HERE IS YOUR ANSWER

GIVEN :-

PRINCIPAL (P) = 10000

RATE (R) = 10%

TIME (N) = 1 YEAR

AMOUNT = A

COMPOUND INTEREST = CI

◆COMPOUNDED HALF YEARLY

A = P(1+R/100 × 1/2)^N×2

A = 10000(1+10/100 × 1/2)^2

= 10000(1+5/100)^2

= 10000(1+1/20)^2

= 10000(21/20)^2

= 10000×21/20×21/20

= 25×21×21

= 11025

CI = A - P

= 11025 - 10000

= 1025

◆COMPOUNDED ANNUALLY

A = P(1+R/100)^N

A = 10000(1+10/100)^1

= 10000(1+1/10)^1

= 10000×11/10×11/10

= 100×11×11

= 12100

CI = A - P

= 12100 - 10000

= 2100

NO, THE INTEREST IN COMPOUNDED HALF YEARLY IS LESS THAN THE INTEREST OS COMPOUNDED ANUALLY BY ₹75.