Question

Q1) Find the amount a d the compound interest on 5000 at 10% p.a. for 1
year, the interest being
compounded half yearly.​

Answer 1

Answer:

When compounded half-yearly, the rate is halved and the time is doubled.

Principal (P) = ₹5000

Rate (R) = (10÷2)% = 5%

Time (n) = (1×2) years = 2 years

Amount (A) = P (1 + R/100)ⁿ

=> A = 5000 (1 + 5/100)²

=> A = 5000 (21/20)²

=> A = ₹5512.50

Compound Interest = A-P = ₹5512.50 - ₹5000 = ₹512.50