Find the CI on Rs.6550 at 4% pa for 2 years compounded half yearly(approx) ?

To find the compound interest (CI) compounded half yearly, we first need to adjust the rate and the time period to account for the semi-annual compounding.

Step 1: Adjust the rate and time Since the interest is compounded half yearly, the rate of interest will be half of the annual rate and the time period will be twice the number of years. So, the rate (r) becomes 4%/2 = 2% per half-year period, and the time (t) becomes 2*2 = 4 half-year periods.

Step 2: Convert the rate into decimal form 2% = 2/100 = 0.02

Step 3: Use the formula for compound interest The formula for compound interest is A = P(1 + r/n)^(nt), where: A = the amount of money accumulated after n years, including interest. P = principal amount (the initial amount of money) r = annual interest rate (in decimal) n = number of times that interest is compounded per year t = time the money is invested for in years

In this case, P = Rs.6550, r = 0.02, n = 2 (since it's compounded half yearly), and t = 4.

Step 4: Substitute the values into the formula A = 6550(1 + 0.02/2)^(2*4)

Step 5: Calculate the amount A = 6550(1 + 0.01)^8 A = 6550 * 1.083857618375313

Step 6: Find the compound interest The compound interest is given by A - P. So, CI = A - 6550 CI = 6550 * 1.083857618375313 - 6550 CI = Rs. 548.50 (approximately)

So, the compound interest on Rs.6550 at 4% per annum for 2 years compounded half yearly is approximately Rs.548.50.