If a sum of Rs. 6,500 is to be borrowed for 2 years at 10% per annum compounded half-yearly, find the compound amount (integer values only).
Given sum =6500 Rs. Time =2 years =4 half years. Rate =10%/annum =5% half year. Effective rate =5%=1/20 
R= (34481/160000) ×100=.21550×100=21.55% Now interest =(6500×21.55)/100=1400.75=1400Rs(approx.) Compound amount =6500+1400=7900.
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