Question

- a bank offers 15% compound interest per half year. a customer deposits rs 8800 each on 1st january and 1st july of a year. at the end of the year, the amount he would have gained by way of interest is _

Answer 1

According to question

Rate = 15 % = 0.15

Also   Principle  P =  Rs 8800
and   Time t = 1/2

Thus

The         Amount  = P (1 + r ) ^t
                   Amount = 8800 ( 1 + 0.15) ^1/2
                                = 9436.94 Rs