Question

Find the amount and the compound interest on Rs 10,000 for 1.5 years at 10% per annum, compounded half yearly. Would this interest be more than the interest he would get if it was compounded annually?

Answer 1

Interest = 11576.25-10000=1576.25
This interest would be more than the interest compounded annually, as interest compounded half yearly is always more than compounded annually at the same rate of interest.