Question

*What is the compound interest on Rs. 200 for 1 year at 10% rate compounded half-yearly*

1️⃣ Rs.200
2️⃣ Rs.220.50
3️⃣ Rs. 320.50
4️⃣ Rs. 100.50​

Answer 1

Answer:

a=200(1+10/200)^2

=200*21/20*21/20

=220.50

Answer 2

Given - Principal amount - Rs. 200

Time period - 1 year

Rate of interest - 10% compounded half yearly.

Find - Compound interest as per the mentioned details.

Solution - Formula to calculate compound interest compounded half yearly is - A = P (1+ R/200)^2n. In the formula, A refers to amount, P refers to principal, r is rate of interest and n is time period.

Keeping the given values in equation-

A = 200*(1+ 10/200)²*¹

A = 200*(1.05)²

A = 220.5 Rs.

Hence, the compound interest generated will be Rs. 220.5.