Find the compound interest on ₹35,000 in 2 years at 6% per annum, the interest being compounded half-yearly (nearest to a ₹):

₹4,393

Interest is compounded Half - yearly,

So, Actual rate of interest = \(\frac{6}{2}\)% = 3%

From the formula for compound interest, we know,

C.I = P(1+$\frac{R}{100})^t$– P

= 35000 [ 1 + \(\frac{3}{100}\) ]4 - 35000

= 35000 × \(\frac{103}{100}\)× \(\frac{103}{100}\)× \(\frac{103}{100}\)× \(\frac{103}{100}\) - 35000

= 39392.8 - 35000

= 4392.8

= 4393  ( nearest Rs. )