Question
Determine the compound interest earned on a principal
amount of Rs. 10,000, which is invested at an annual interest rate of 42%, with interest being compounded semi-annually, over the course of one year.Solution
ATQ, Rate = (42/2) = 21% per 6 months Desired interest = 10000 × [(1.21)2 – 1] = 10000 × 0.4641 = Rs.4641
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