Question
Find the approx. compound interest on Rs. 5000 at 4% per
annum for 2 years compounded half yearly?Solution
Principal = Rs. 5,000 Rate = 4% = 4/2 = 2% half yearly Time = 2 years Time will double = 2 × 2 = 4 years CI = P(1+r/t)n-P = 5000(1+2/100)4-5000 = 5000(1+1/50)4-5000 = 5000 × 51/50 × 51/50 × 51/50 × 51/50 - 5000 = 5412.16 - 5000 = Rs. 412.16 =Rs. 412 (approx. )
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