Question

Rs 1600 at a compound interest of 5% per annum, compounded half yearly for one year. What will it amount to?

Answer 1

Answer:

Here, P = $12,000, R = 20% and n = 2 years.

Amount after 2 years = P ( 1 + r/2) 2n  

= 12,000 ( 1 + 0.20/2) 2 x 2  

= 12,000 ( 1 + 0.1) 4  

= 12,000 (1.1) 4  

= 12,000 x 1.4641  

Amount = $ 17569.20  

∴ C.I = A - P  

C.I = 17569.20 - 12000

C.I = $ 5569.20