Question

Varun deposited rs 50000 in a bank where interest is credited half yearly. What amount did he get back after 2 years at 20% per annum?

Answer 1

he get rs60000
bcoz interest is credited half yearly
so interest =(20/100)*1*50000 =10000
total amount 50000+10000=60000
I hope answer is helpful to you

Answer 2

This can be calculated by keeping RS 50000 as the main principle amount, rate of interest as 20% and the time of two years where the interest is given half yearly.

So by applying the formula Amount A = P[1+R/100]n.

This is how the Amount can be determined and then subtracting the principle from the calculated amount will also give the Compound interest.