Find the amount and the compound …

COMPOUNDED HALF YEARLY- Principal= rs. 10,000 Rate= 5% per half year Time= 3 half years. Amount=Principal(1+Rate/100)time(in power) =10,000(1+5/100) 3(in power) =10,000*105/100*105/100*105/100 =(105*105*105)/100 =11,57,625/100 =11576. 25 Compound Interest=Amount-Principal =11576.25-10,00 =1576.25 COMPOUNDED ANNUALY- Principal=10,000 Rate= 10% per annum Time= 1(1/2) years. (first, we will find the interest for 1 year and then for half year.) (As time is 1 year, the SI=CI. So, to make our calculation easier, we are going to find it in simple interest only) Simple Interst= (principal*time*rate)/100 =(10,000*1*10)/100 =1000 Amount= principal+Interest =10,000+1000 11000 (for next half year, the amount becomes principal in CI ie 11000 becomes our new principal.) Intesrest= PRT/100 =(11000*10*1)/(100*2) =110*5 =550 Thus, for 1 and a half years compounded annually, our interest comes out to be rs. 550. Comparing the Interests- 1576. 25>550 Difference = 1576.25-550 =rs. 1026.25. Thus,the compound interest will be more if the principal is compounded half yearly.