Question
Rahul invested ₹4,000 in a
scheme offering a compound interest rate of 16% per annum, compounded semi-annually. Calculate the total interest earned by him in 24 months.Solution
ATQ,
Effective Rate: 16/2 = 8% per 6 months. Number of Periods: 24/6 = 4. Compound Interest Formula 
Substitute values: A = 4000×(1.08)4 = 4000×1.3605 = ₹5,442.
Interest Earned = A−P = ₹5,442−₹4,000 = ₹1,442.
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‘ PREPOSITION ’
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