A sum of Rs. 2000 was invested at a rate of 10%

Solution

Given: • Principal (P) = Rs. 2000 • Rate of interest (R) = 10% per annum Since the interest is compounded half-yearly, the rate for half-year = 5% The formula for compound interest is:   • Where: • A is the amount after time t • P is the principal • R is the rate of interest • t is the time in years For this case: • P=2000 • R=5%(since the rate is calculated every 6 months) • t=2(since it is calculated for one year with two intervals of 6 months)