Question

If principal = Rs 1,00,000. rate of interest = 10% compounded half yearly. Find interest for next 6 months.

Answer 1

Principal (P) = ₹ 100000

Rate of interest (R) = 10% compounded half-yearly

Interest for next 6 months

Principal = Amount after 6 months

∴ Principal (P) = ₹ 105000

Rate of interest (R) = 10%

∴ A = `P(1 + R/200)^n`

= `105000(1 + 10/200)^1`  ......[∵  n = 1 for 6 months]

= `105000 xx 21/20`

= `2205000/20`

= ₹ 110250

∵ Compound interest , CI = A – P

= ₹ 110250 – ₹ 105000

= ₹ 5250