Question

Find the amount and the compound interest on ₹ 32,000 for 1 year at 20% per annum compounded half-yearly.

Answer 1

Principal (P) = ₹32,000

Time (t) = 1 year

Rate (r) = 20%

Amount =${\displaystyle \text{Principal}\times {(1+\frac{\text{r}}{2\times 100})}^{\text{n}\times 2}}$

${\displaystyle =₹32,000\times {(1+\frac{20}{200})}^{1\times 2}}$

${\displaystyle =₹32,000\times {\left(\frac{11}{10}\right)}^2}$

${\displaystyle =₹32,000\times \frac{11}{10}\times \frac{11}{10}}$

= ₹38,720

C.I. = Amount − Principal

= ₹38,720 − ₹32,000

= ₹6,720