Question

Madhu deposited Rs. $20000$ in a bank at $10\%$ per annum. Find the difference in the compound interest after $1\frac{1}{2}$ years if the interest is compounded half-yearly.

Answer 1

Madhu diposited Rs $20000$ in a bank,

$\text{Rate}=10\%$ per annum compounded half yearly,

$\text{Time}=\frac{3}{2}$ years.

We know that,

$\text{Total amount}=\text{Principle}+CI$

For interest compounded half yearly,

$\text{Total amount}$ $=P{(1+\left(\frac{R}{200}\right))}^{2n}=20000{(1+\left(\frac{10}{200}\right))}^{2\times \frac{3}{2}}=\frac{20000\times 210\times 210\times 210}{200\times 200\times 200}=22050$

$\text{Interest}$$=\text{Amount}-\text{Principle}=22050-20000=2050Rs$