Question

Find the amount and the compound interest on Rs. 32000 for 1 year at 20% per annum compounded half-yearly.

Answer 1

Principal(P)= Rs. 32000
Time(t) = 1 year
Rate(r)= 20%
Amount=Principal$\times {(1+\frac{r}{2\times 100})}^{n\times 2}$
$=Rs.32000\times {(1+\frac{20}{200})}^{1\times 2}$
$=Rs.32000\times {\left(\frac{11}{10}\right)}^2$
$=Rs.32000\times \frac{11}{10}\times \frac{11}{10}=Rs.38720$
C.I=Amount-Principal
=Rs. 38720-Rs. 32000=Rs. 6720