Question

Find the compound interest on 30000 for 2 years at the rate of 20% per annum,

if the interest is compounded half yearly.

Answer 1

13,923

Explanation:

The computation of the compound interest is shown below:

= Principal × (1 + rate of interest)^n - Principal

= 30,000 × (1 + 0.20 ÷ 2)^2 × 2 - 30,000

= 30,000 × (1.10)^4 - 30,000

= 43,923 - 30,000

= 13,923