Given:
Present value= ₹ 160000
Interest rate= 10 % per annum
Time=2 years and compounded half yearly
To find the amount we have the formula,
Amount (A) = P (1+(R/100)2n
Where P is present value, r is rate of interest, n is time in years.
Now substituting the values in above formula we get,
∴ A = 160000 (1 + (10/2)/100)4
⇒ A = 160000 (1+5/100)4
⇒ A = 160000 (21/20)4
⇒ A = 160000 × 194481/160000
⇒ A = ₹ 194481
∴ Compound interest = A – P
= 194481 – 160000 = ₹ 34481
