A person deposited Rs 80,000 in a bank at the rate of 12% p.a. interest compounded
semi-annually for 2 years. After one year the bank revised it's policy to pay the
interest compounded annually at the same rate. What is the percentage difference
between the interest of the second year due to the revised policy? Give reason with
calculation. Plz answer me fast in copy
Answers
Answer:
hi
Step-by-step explanation:
In year 1, 10% simple interest is 500 Rs.
In year 2, it's semiannual, compounded. The more frequent the compounding, the higher the yield.
So in year 2, the 1st 6 months produce 5%, ie 250 Rs interest.
In the 2nd 6 months, it's 5% on 5,250, not 5% on 5,000.
5% on 5,250 Rs is 262.50.
So the total interest for year 2, is 250 + 262.50= 512.50 Rs.
Year 2 is 12.50 Rs higher than year 1 because of semiannual compounding instead of annual compounding.
For purposes of explanation, to compare apples to apples, I did not treat year 2 as starting with the interest accrued during year 1.
pls mark my answer has brilliant
Answer:
Step-by-step explanation:
Given,
principal pries (p) = Rs 80000
R = 12%
T = 1 years
semi - compound interest = ?
we know ,
semi - compound interest = p[(1+R\200) ^2T - 1]
= 80000[(1+12\200) ^2× - 1]
= 80000[(1.06) ^2 - 1]
=80000[( 1.1236- 1]
=80000 x 0.1236
= Rs. 9,888
Again,
For the second years
p = Rs. 9,888+ Rs80000 = Rs. 8988
T = 2years
R = 12%
compound interest=?
we know,, C.i = p[(1+R\1200)^T - 1]
= 89888[(1+12\100)^1 - 1]
= 89888[(1.12)^2- 1]
= 89888[1.12 - 1]
= 89888 x 0.12
= Rs. 10,786.56
According to the question.
p= Rs. 89,888
T = 1years
R = 12%
semi - c. I = ?
semi-compound interest = p[(1+R\200) ^2T - 1]
= 89888 [(1+12\200)^2-1]
= 89888 [1.1236-1]
= 89888 x 0.1236
= Rs1,110.9168
Now,
different = semi c. I - annually c. I = Rs1,110.9168 -Rs. 10,786.56
= Rs 323.60
different of interest % =323.60×100\1110.9168
= 2.91%
so the second year deceased interest of 2.91%.