Roma borrowed Rs 64000 from a bank for 0.5  years at the rate of 10% per annum. Compute the total compound interest payable by Roma after  0.5 years, if the interest is compounded half-yearly.

Explanation

Interest for the first half year
`=(PRT)/100=`Rs.`(64000×5×1)/100=`Rs.`3200`
Amount after first half-year
`=`Rs. `64000 +` Rs. `3200 =` Rs.` 67200`
Or principal for the second half-year
`=` Rs. `67200`
Interest for the second half-year
`=`Rs.`(67200×5×1)100=`Rs.`3528`
∴Total compound interest for `3` half-years or `3/2` years `=` Rs. `3200 +` Rs. `3360 +` Rs. `3528 =` Rs. `10088`