Find the compound interest on ₹20,000 for $1\frac{1}{2}$ years at 20% per annum, compounded half-yearly.

Explanation

1. 01

   Rate per half-year = 10%; number of half-years in $1\frac{1}{2}$ years = 3.

2. 02

   Amount = $20000 \times (1.1)^3 = 20000 \times 1.331 = 26620$.

3. 03

   CI = ₹26,620 − ₹20,000 = ₹6,620.