Question

ram invested an amount of rupees 50000 at 20% per annum find the compound interest received on the investment if the interest is compounded half yearly​

Answer 1

Answer:

The compound interest received on the investment is 10500 Rs

Step-by-step explanation:

Given : Amount invested P = 50000 Rs

            Rate of interest R = 20 %

           Compounding frequency N = half yearly = 2

           Period T = 1 year

           Compound interest = ?

Solution : Compounded amount = P x (1 + R/Nx100)^NT

                                                     = 50000 x ( 1 + 20/2 x 100)^2x1

                                                     = 50000 x ( 1 + 0.1 )^2

                                                     = 50000 x 1.1 x 1.1

                                                     = 60500 Rs

          Compound interest = Compounded amount - principal amount

                                           = 60500 - 50000

                                            = 10500 Rs