Compound Interest

This text discusses the concept of compound interest, with a focus on annual, semi-annual, monthly, and daily compounding. Several examples are provided to illustrate the different compounding methods.

Questions

1. What is the amount after 2 years if 2,000 is invested at an annual rate of interest of 10%?
2. What is the compound interest for an investment of Rs 7,500 at 6 % compounded half-yearly?
3. Find the rate of interest if the amount owed after 6 months is ` 1,050, borrowed amount being ` 1,000.

Answers

1. The amount after 2 years is 2,400.
2. The compound interest is Rs 3,193.20.
3. The rate of interest is 10%.