Question

Question 85(i)

If principal = Rs. 100000, rate if interest = 10 $\%$ compounded half - yearly.
Find Interest for 6 months.

Answer 1

Principal (P) = Rs. 100000
Rate of interest (R) = 10 $\%$ compounded half - yearly
Interest for 6 months,
We know that,
Compound interest, CI = A - P
where, $A=P{(1+\frac{R}{200})}^n\left[for6months\right]\therefore A=P{(1+\frac{R}{200})}^n=100000{(1+\frac{10}{200})}^n[\therefore n=1for6months]=100000\times \frac{21}{20}=105000\therefore$ Compound interest, CI = A - P = Rs. 105000 - Rs. 100000 = Rs. 5000