Find the compound intrest on ₹20,000 at 20% p.a for 1 years compounded half yearly.

Given:

Principal (P) = ₹20,000

Annual rate of interest (R) = 20% per annum

Time (n) = 1 years = 1.5 years

Interest is compounded half-yearly.

Formula Used:

When interest is compounded half-yearly:

Rate per half-year (r) = R / 2 = 20% / 2 = 10%

Number of half-year periods (t) = n × 2 = 1.5 × 2 = 3

Amount (A) =

Compound Interest (CI) = Amount (A) - Principal (P)

Calculation:

Rate per half-year (r) = 10%

Number of half-year periods (t) = 3

Amount (A) =

A =

A =

A =

A =

A = ₹26,620

Compound Interest (CI) = Amount (A) - Principal (P)

CI = ₹26,620 - ₹20,000 = ₹6,620

The compound interest on ₹20,000 at 20% p.a for 1 years compounded half-yearly is ₹6,620.