Question

Calculate the amount and compound interest for Rs. 5,000 for 1 year at 4% compounded semi-annually.

Answer 1

Here $P=5,000$ Rs.,

$n=2$ years(Compounded semi-annually) and $R=\frac{4}{2}$(Compounded semi-annually)

Amount$\left(A\right)=P{(1+\frac{R}{100})}^n$

$=5000{(1+\frac{4}{2\times 100})}^2$

$=5000{\left(\frac{102}{100}\right)}^2$

$=\frac{5000\times 102\times 102}{100\times 100}$

$=5,202$ Rs.

Compound interest$(C.I)=A-P=5,202-5,000=202$

Hence, the compound interest is Rs. $202$.