Find the compound interest on ₹40,000 after 2 years 6 months at 20% per annum, if the interest is compounded half-yearly.

₹24,420.40

Interest is compounded half yearly  ,

Rate of interest = \(\frac{20}{2}\)% = 10%

From the formula for compound interest, we know,

C.I = P(1+$\frac{R}{100})^t$– P

 = 40000 [ 1 + \(\frac{10}{100}\) ]5 - 40000

 = 40000 [  \(\frac{11}{10}\) ]5 - 40000

 = 40000 [ \(\frac{161051}{100000}\)  - 1 ]

= 40000 [ \(\frac{ 61051 }{100000}\) ]

= Rs. 24420.4