Question

What is the compound interest on Rs.8800 if it is compounded half-yearly for one year at 8% p.a.(in nearest rupee).​

Answer 1

If compound interest is compounded half-yearly then time is doubled and rate is halved

So t= 2 years and r= 4%p.a

Now applying formula for amount

We get Amount as 9518.08

A = P + C.I

C.I = A-P

= 9518.08-8800 = 718.08