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Central Government Service

Program for SSC CGL

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Maths / Comparing Quantities / Compound Interest Half Yearly
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Compound Interest Half Yearly

Compound interest:

Compound interest is calculated by adding the interest to the previous principal to get the new principal for the next definite period of time,

Calculating Interest Compound Half Yearly:

In this case the rate is halved and the time is doubled in years.

1. Find the compound interest on Rs. 5000 for 18 months at 8% per annum, compounded half yearly.

Principal= Rs 5000

Time = 18 months

       large =frac{18}{12}; years=frac{18}{12} X 2= 3; times

Rate = 8 % = 4 % when compounded half yearly

large amount = principalleft [ 1+frac{rate} {100}right ]^{time}

large amount = 5000left [ 1+frac{4} {100}right ]^{3}

large = 5000left [ 1+frac{1} {25}right ]^{3}

large = 5000left [ frac{26} {25}right ]^{3}

large = 5000 ;X; frac{26} {25} ;X; frac{26} {25} ;X; frac{26} {25}=5624.32


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