1. If the interest is compounded half-yearly,
calculate the amount when principal is
7,400; the rate of interest is 5% per annum
and the duration is one year.
Answers
Answered by
2
Answer:
₹7774.63
Step-by-step explanation:
When compounded half-yearly, the rate is halved and the time is doubled.
Principal (P) = ₹7400
Rate (R) = (5÷2)% = 2.5%
Time (n) = (1×2) years = 2 years
Amount (A) = P (1 + R/100)ⁿ
=> A = 7400 (1 + 2.5/100)²
=> A = 7400 (41/40)²
=> A = ₹7774.625 = ₹7774.63
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