What is the total interest obtained on a sum of Rs.5000 at a rate of 10% for 2 years when the interest is compounded semiannually?

To calculate the compound interest, we can use the formula:

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

Given in the problem: P = Rs. 5000 r = 10% per annum = 0.10 (in decimal) n = 2 times per year (since it is compounded semiannually) t = 2 years

Substituting these values into the formula:

A = 5000 (1 + 0.10/2)^(2*2)

Solving the equation:

A = 5000 (1 + 0.05)^(4) A = 5000 (1.05)^(4) A = 5000 * 1.21550625 A = Rs. 6077.53

The total amount after 2 years will be Rs. 6077.53

To find the total interest obtained, subtract the initial principal from the total amount:

Interest = A - P Interest = 6077.53 - 5000 Interest = Rs. 1077.53

So, the total interest obtained on a sum of Rs.5000 at a rate of 10% for 2 years when the interest is compounded semiannually is Rs. 1077.53.