Question

The compound interest on Rs 20,000 for 2 years at 20% per annum when compounded half yearly is

Answer 1

Answer:

Principle Amount=Rs.20,000.

Time =2 years.

Rate of Interest=20%.

Amount=P(1+R/100)².

Amount=20,000(1+20/100)².

Amount=20,000(6/5)².

Amount=20,000*(6/5)*(6/5).

Amount=28,800

Compound Interest=Amount-Principle.

Compound Interest=Rs.(28,800-20,000)

Compound Interest=Rs.8,800.........(ANSWER).

Step-by-step explanation:

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Answer 2

Given:

Principal amount = Rs.20,000

Time period = 2 years

Rate of interest = 20 %

To find:

Compound Interest.

Solution:

The formula for compound interest is,

Compound Interest, C.I. = $P ( 1 + \frac{R}{100} )^T - P$

P = Principal sum

R = Rate of interest

T = Time period

For compound Interest calculated half-yearly, the interest rate becomes half, and the time becomes twice.

Here, Rate of interest , R= 20/2= 10%

Time period = 2×2 = 4 years.

Putting the values in the formula for compound interest,

C.I = $20000 ( 1 + \frac{10}{100} )^4 -20000$

C.I = Rs. 9282

The compound interest compounded half-yearly is Rs. 9282.