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Program for SSC CGL

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Central Government Service

Program for SSC CGL

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Current Affair, Maths, English, History, Democratic Politics, Geography, Economics, Verbal Reasoning, Non Verbal Reasoning, General Awareness, Critical Reasoning, Verbal Ability, Vedic Maths, General Knowledge

Concept Detail
Maths / Comparing Quantities / Compound Interest Half Yearly
(A Brief Glimpse of ABHYAS Content - Have aLook !!!!)

## 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

$\inline \dpi{120} \large =\frac{18}{12}\; years=\frac{18}{12} X 2= 3\; times$

Rate = 8 % = 4 % when compounded half yearly

$\inline \dpi{120} \large amount = principal\left [ 1+\frac{rate} {100}\right ]^{time}$

$\inline \dpi{120} \large amount = 5000\left [ 1+\frac{4} {100}\right ]^{3}$

$\inline \dpi{120} \large = 5000\left [ 1+\frac{1} {25}\right ]^{3}$

$\inline \dpi{120} \large = 5000\left [ \frac{26} {25}\right ]^{3}$

$\inline \dpi{120} \large = 5000 \;X\; \frac{26} {25} \;X\; \frac{26} {25} \;X\; \frac{26} {25}=5624.32$

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