If compound interest is paid half-yearly, the compound ... – Arithmetic

Arithmetichard · Past Paper

If compound interest is paid half-yearly, the compound amount formula is:

AA = P(1 + R/100)^T

BA = P(1 + R/200)^2T

CA = P(1 + R/400)^4T

DA = P(1 + 2R/100)^T/2

✓ Correct Answer: B — A = P(1 + R/200)^2T

Half-yearly means interest is added twice a year, so rate is R/2 and time is 2T.

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