Question

a person deposit Rs 100000 in a bank *x"For two years at 10 % annual compounded interest but after 1 year bank has changed the policy and decided to pay semi-annual compound interest at the same rate what is the difference between compound interest of the first and second year​

Answer 1

C. A=110000

H. C. A=121275

difference of CA and hca

121275-110000

=11275

Answer 2

Answer:

12.75% Increase

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Step-by-step explanation:

The 1st year is simple interest, due to the fact that interest has not yet compounded.

Well first year interest is:

= 100000 × 10/100

= 1st year's interest : 10000

Now Total Principal: 100000 + 10000 = 110000

2nd year semi annual interest:

Formula P (1 + r/2/100)^(nt)

Final Amount= 110000 ( 1 + (10/2)/100)²

=110000 ( 1 + 5/100)²

= 110000 × 1.1025

Final Amount= 121275

2nd year Interest = 121275 - Principal

= 121275 - 110000

2nd year interest = 11275

Change in Percentage :

= (New value - Old value) ÷ old value × 100

= 11275 - 10000

= 1275 ÷ 10000 × 100

= 12.75% increase

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