Question

Find the compound interest (CI) semi-annually (Half Yearly) for the given principal, time, and rate of interest having principal, time, and rate which was given in DAY 01 above. Use the formula: CI = P(1 + r/n)^(nt) - P, where P is the principal, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the time in years.

a. Rs. 100
b. Rs. 200
c. Rs. 300
d. Rs. 400

Answer 1

To calculate compound interest, the provided formula CI = P(1 + r/n)^(nt) - P is used. This requires details such as the principal amount, annual interest rate, compounding frequency, and time which were not provided in the question.

Step-by-step explanation:

Compound interest is calculated on the initial principal and also on the accumulated interest from previous periods. To find the compound interest, the formula CI = P(1 + r/n)^(nt) - P is used, where P is the principal, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the time in years.

Unfortunately, as the original question doesn't provide the specific rate or time needed to calculate the compound interest on the given principal amounts, a complete numerical solution can't be given. Typically, one would follow these steps:

1. Determine the principal amount, annual interest rate, number of times interest is compounded per year, and the time in years.
2. Insert these values into the compound interest formula.
3. Calculate the future value by raising the quantity (1 + r/n) to the power of nt.
4. Multiply the principal by the calculated quantity.
5. Subtract the principal to get the compound interest.