Shortcut Trick
Rate for half-year = 10% ÷ 2 = 5%.
First deposit (₹2000) earns interest for 2 half-years: 2000 × 1.05 × 1.05 = ₹2205.
Second deposit (₹2200) earns interest for 1 half-year: 2200 × 1.05 = ₹2310.
Total Amount = 2205 + 2310 = ₹4515.
∴ The correct answer is ₹4515.
Alternate Method
Given: First deposit P1 = ₹2000 on 1st Jan, Second deposit P2 = ₹2200 on 1st July, Annual Rate R = 10% compounded half-yearly.
Formula Used: Amount A = P(1 + r/100)n, where r is the rate per period and n is the number of periods.
⇒ Half-yearly rate (r) = 10% ÷ 2 = 5%.
⇒ Amount from 1st Jan deposit (for 2 periods) = 2000 × (1 + 5/100)2
⇒ A1 = 2000 × (1.05) × (1.05) = 2000 × 1.1025 = ₹2205.
⇒ Amount from 1st July deposit (for 1 period) = 2200 × (1 + 5/100)1
⇒ A2 = 2200 × 1.05 = ₹2310.
⇒ Total Amount = A1 + A2 = 2205 + 2310 = ₹4515.
∴ The correct answer is ₹4515.
Additional Information
Half-Yearly Compounding
In half-yearly compounding, the annual rate is divided by 2 and the time (number of years) is multiplied by 2.
Effective Rate of Interest
For an annual rate R compounded half-yearly, the effective annual rate is Reff = (1 + R/200)2 − 1.
Difference between SI and CI
For 2 periods (1 year compounded half-yearly), the difference is P × (r/100)2, where r is the half-yearly rate.