| Compounded Yearly | Compounded half yearly |
|---|
| Interest is added after every one year to form a new principal | Interest is added after every six months to form a new principal. |
| No Change in Rate of Interest | Rate of Interest is equal to half of annual rate i.e. R = R/2 |
| No Change in Time | Since in one year there are two half years, so T = 2T |
| Amount = P ( 1 + R / 100 ) T | Amount = P ( 1 + R / 200 ) 2T |
| CI = P [ ( 1 + R / 100 ) T - 1] | CI = P [ ( 1 + R / 200 ) 2T - 1] |
