₹20000 is invested on compound interest (compounded half-yearly) at the rate of 20% per annum, then what will be the interest after two years?

₹9282

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

 = 20000 [ 1 + \(\frac{10}{100}\) ]4 - 20000

 = 20000 [  \(\frac{11}{10}\) ]4 - 20000

 = 20000 [ \(\frac{ 14641}{10000}\)  - 1 ]

= 20000 [ \(\frac{ 4641 }{10000}\) ]

= Rs. 9282