Ravi invested an amount of ₹20,000 at 10% per annum. Find the compound interest received on the investment if the interest is compounded half-yearly.. step by step
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Given:
P = 2000
t = 2 years
r = 20%
Concept used :
Amount = P[1 + (R/100)]T
When compounded half-yearly,
T = 2 × T
R = R/2
CI = A - P
Calculation:
If interest compounded half-yearly, then
T= 2 × 2 = 4
R = 20/2 = 10%
A = 20000 × (11/10) × (11/10) × (11/10) × (11/10)
⇒ A = 29282
CI = 29282 – 20000
⇒ CI = Rs. 9282
∴ CI is Rs 9282.
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