Simple Interest Rate Principle Rate of Interest Time Period years 100. Amount Principal 1 Rate of Interest100 Time period Abbreviated as Amount P 1 R100 t when compounded annually. If interest is compounded half yearly rate of interest R 2 and A P 1 R 2 100 T where T is the time period.
The simple interest calculation will be as below.
Compound Interest Half Yearly Amount P 1r2100 2t Compound Interest Total amount Principal Rate of interest R 2 P 1t 1. Sometimes the interest is also calculated half-yearly or quarterly. In the present case A Future value of the investment is to be calculated. Interest Compounded Half-Yearly When interest is compounded Half yearly Then Formula for Amount P 1 r 2 1 0 0 2 nmathbf 1 frac frac.