Mathematics
Compound Interest Half Yearly
Calculate compound interest when compounded half-yearly.
A = P(1 + R/200)^{2T}
Formula Explanation
Rate is halved and time is doubled because interest is added twice a year.
Variables Explained
P = Principal; R = Annual rate; T = Years.
Solved Example
Find amount on ₹8000 at 10% for 1 year compounded half-yearly.
A = 8000(1 + 10/200)² = 8000 × (1.05)² = ₹8820.