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


Here, Principal (P) = Rs. 10000, Rate of Interest (R) = 10% = 5% (compounded half yearly)


Time, n = years = 3 years (compounded half yearly)




= Rs. 11,576.25


Compound Interest (C.I.) = A – P


= Rs. 11,576.25 – Rs. 10,000 = Rs. 1,576.25


If it is compounded annually, then


Here, Principal (P) = Rs. 10000, Rate of Interest (R) = 10%, Time = years


Amount (A) for 1 year =



= Rs. 11,000


Interest for 1/2 year = = Rs. 550


Total amount = Rs. 11,000 + Rs. 550


= Rs. 11,550


Now, C.I. = A – P = Rs. 11,550 – Rs. 10,000


= Rs. 1,550


Yes, interest Rs. 1,576.25 is more than Rs. 1,550.


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