Akash lent 10,000 for 1/2 years at 12% per annum, compounded annually. How
much more could he have earned if the interest was compounded half-yearly?
Please explain it step by step!
Answers
Answered by
0
Step-by-step explanation:
Here P=10,000 Rs.,
n=2(1
2
1
)=3 years(Compounded semi-annually) and R=
2
5
(Compounded semi-annually)
Amount(A)=P(1+
100
R
)
n
=5000(1+
2×100
5
)
3
=5000(
40
41
)
3
=
40×40×40
5000×(41)
3
=10,768.90 Rs.
Compound interest(C.I)=A−P=10,768.90−10,000=768.90
Hence, the compound interest is Rs. 769.
Similar questions