A bank offers 5% per annum compounded half yearly. A customer deposits Rs. 9600 each on 1st January and 1st July of a year. At the end of t…

A = P [1 + (r/n)]nt

Where,

A = amount

P = principal

R = rate of interest

N = no. of times interest is calculated

T = time taken

Here, r = 5%; n = 2; P = Rs. 9600; t = 1

$(\begin{array}{l} \Rightarrow \left[ {9600 \times {{\left\{ {1 + \frac{5}{{2 \times 100}}} \right\}}^2} + 9600\left\{ {1 + \frac{5}{{2 \times 100}}} \right\}} \right]\\ \Rightarrow \left[ {9600 \times \frac{{41}}{{40}} \times \frac{{41}}{{40}} + 9600 \times \frac{{41}}{{40}}} \right]\\ \Rightarrow \left[ {9600 \times \frac{{41}}{{40}}\left( {\frac{{41}}{{40}} + 1} \right)} \right]\\ \Rightarrow \frac{{9600 \times 41 \times 81}}{{\left( {40 \times 40} \right)}} = 19926 \end{array})$

⇒ Compound Interest = Amount – Principal = 19926 – (9600 × 2) = Rs. 726