What will be the interest on a sum of Rs 10000 in 1 year at6% per annum, if interest is being compounded half-yearly?Rs 1000Rs 609Rs 500Rs 700

The formula for compound interest is A = P(1 + r/n)^(nt), where:

• A is the amount of money accumulated after n years, including interest.
• P is the principal amount (the initial amount of money).
• r is the annual interest rate (in decimal).
• n is the number of times that interest is compounded per year.
• t is the time the money is invested for in years.

Given in the problem:

• P = Rs 10000
• r = 6% per annum = 0.06 (in decimal)
• n = 2 times per year (since it's compounded half-yearly)
• t = 1 year

Substitute these values into the formula:

A = 10000(1 + 0.06/2)^(2*1)

Calculate the expression inside the parentheses:

A = 10000(1 + 0.03)^2

Calculate the exponent:

A = 10000 * 1.0609

Finally, calculate the total amount:

A = Rs 10609

The interest earned is the total amount minus the principal:

Interest = A - P Interest = 10609 - 10000 Interest = Rs 609

So, the interest on a sum of Rs 10000 in 1 year at 6% per annum, if interest is being compounded half-yearly, is Rs 609.