Question

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.​

Answer 1

First, formula used is A=P(1+i)^n
P=7400
For i, r=5/2 (half yearly)
i=2.5/100=0.025

A=7400(1.025)^2
A=7400x 1.050625
A=7774.625