Question

if the interest is compounded half yearly calculate the amount when the principal is 7000 the rate of interest is 5% per annum and the duration is 1 years

Answer 1

Interest for 6 months = I = P r t = 7000 * 5/100 * 1/2 = 175

Total sum after 6 months = 7175
interest for next 6 months = 7175 * 5 /100 * 1/2 =  179.375 

Sum after 1 yr = 7175 + 179.38 = 7 354.38