1.

Find the Compound Interest on Rs.5000 in 2 years at 10 % per annum compounded half yearly

Answer»

Answer:

$2320.5

Step-by-step explanation:

We need to calculate the Compound interest

Formula of Compound interest (CI): CI = A - P  ⇒  A is Total amount

                                                                                  P is PRINCIPAL deposit

Principal deposit is Rs. 5000 but we dont know the Total amount

Formula for Total amount (A):  A=P(1+r/100)^{n}  ⇒  r is annual rate

                                                                                       n is NUMBER of years

                                                    Since it is half yearly n will be 2n

So

A=P(1+r/100)^{2n}\\A=5000(1+10/100)^{2*2}\\A=5000(1+0.1)^{4}\\A=5000(1.1)^{4}\\A=5000*1.4641\\A=Rs.7320.5

So Compound interest will be A - P

                                                  7320.5 - 5000

                                                  $2320.5


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