2000 is invested at annual rate of int. at 10% p.a. the amount of 2 yr if compounding is done half yearly
Answers
Answered by
1
Answer:
The formula for compound interest is
P(1+ r/100)^t -P.
Since in the given question it is compounded half yearly the r will be halved and t will be doubled.
Therefore the equation will become
P( 1+ r/2*100)^2t -P
2000( 1+ 10 /200)^4-2000
= (2000* 21/20*21/20*21/20*21/20)- 2000
=2000*21^4/20^4 -2000
=2431.013-2000
=431.013
=
Explanation:
Similar questions