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Compound Interest

Compound interest

Compound Interest

Half yearly compound interest

Q. A man deposited Rs. 60,000 in the bank for 2 years. If the ratw of compound interest is 15 paisa per rupee per year. Find out the compound interest compounded half yearly received by the man.

Soln: 
Here,  Principle (P)= Rs. 60,000                         

  Time (T)= 2 years                                       

 Rate (R)= 15 paisa per Re.   

               = 15% per year                           

   Half yearly C.I= ?

We know that,   

Half yearly C.I = P [ (1+ R/200) 2T - 1 ]   

                          = 60000[(1+15/200)2*2-1]

                          = 60,000[(215/200)4 -1]

                        = 60000[ 1.335469141 - 1] 

                         = 60000*0.355469141

                        = 20128.15

Therefore, the required half yearly compound interest is Rs. 20128.15.