Question
Rs. 10,000 is being compounded at 20% per annum.
Calculate the amount after 2 years if the rate of interest is charged half yearly.Solution
Given – P =10000, Rate =20% per annum =10% half yearly Time =2 years =4 half years. First method - A=P(1+r/100) n =10000(1+10/100)4 =10000(11/10)4 =10000×14641/10000 =14641 Second method- Compound interest- 10000×10/100=1000 1000×10/100=100 100×10/100=10 10×10/100=1 
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