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Louise Robinson

find the compound interest on rupees 5000 for 2 years at the rate of 10% per annum the interest being compounded half yearly​

answers: 1
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Answer:

$2320.5

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}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

\begin{gathered}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\end{gathered}

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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