Half-yearly Compound Interest Formula
Let the principal invested be P and the interest rate is R % per annum which is compounded half-yearly for ‘t’ years
As it is compounded half-yearly, the principal will be changed at the end of 6 months, and interest earned till then will be added to the principal and then this becomes the new principal. Similarly, the final amount is calculated.
We know,
rate = R% per Annum Compounded Half Yearly
rate = (R/2) %
time is t years we know that t years have 2t half years.
Now,
A = P (1 + R/200)2t
CI = A – P
Compound Interest Formula
Compound Interest is the interest that is calculated against a loan or deposit amount in which interest is calculated for the principal as well as the previous interest earned.
The common difference between compound and simple interest is that in compound interest, interest is calculated for the principal amount as well as for the previously earned interest whereas simple interest depends only on the principal invested.
Table of Content
- What is Compound Interest?
- Compound Interest Formula
- How to Calculate Compound Interest?
- Compound Interest Formula – Derivation
- Half-yearly Compound Interest Formula
- Quarterly Compound Interest formula
- Monthly Compound Interest Formula
- Daily Compound Interest Formula
- Periodic Compounding Rate Formula
- Rule of 72
- Compound Interest of Consecutive Years
- Continuous Compounding Interest Formula
- Some Other Applications of Compound Interest
- Difference between Compound Interest and Simple Interest
- Compound Interest Examples
- Compound Interest – Practice Questions