rs 2400 at 20% p.a on compound interest for 1 year compounding done semi anually
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When compounded semi-annually, the Rate is halved and the Time is doubled.
Principal (P) = Rs.2400
Rate (R) = (20÷2)% = 10%
Time (n) = (1×2) years = 2 years
Amount (A) = P (1 + R/100)ⁿ
=> A = 2400 (1 + 10/100)²
=> A = 2400 (11/10) (11/10)
=> A = Rs.2904
Compound Interest = A-P = Rs.(2904 - 2400) = Rs.504
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