Question

what is the compound interest (in rs) for 1 year on a sum of rs 20000 at the rate of 40% per annum compounding half yearly?

Answer 1

Answer:

Given,

Principal (p) = 20000

and interest (I) = 40/2%

Time = 1year and n = 2

formula =>  p(1 + i) {}^{n} - 1)

20000( 1 + \frac{40\%}{2} ) {}^{2} - 1

20000(1 + 20\%) {}^{2} - 1

=> [(1+0.2)²-1]

=> 0.0404

so,

Interest be 20000×0.0404

=> 808

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@GauravSaxena01