Anuj deposited a sum of 38000 in a branch of an international bank for 2 years,compounded half yearly at 10% per annum. Find the compound interest he gets at the end of 2 years
Answers
Answer:
8189.2375
Step-by-step explanation:
Principal(P) = Rs 38000
Interest rate (r) = 10%
Time period (t) = 2 year
No of time interest applies in a year (n) = 2
= 46,189.2375 - 38000
= 8189.2375
Answer:
The formula for compound interest, including principal sum, is:
A=P(1+
n
r
)
nt
Where:
A= the future value of the investment/loan, including interest
P= the principal investment amount (the initial deposit or loan amount)
r= the annual interest rate (decimal)
n= the number of times that interest is compounded per unit t
t= the time the money is invested or borrowed for
In our given problem,
P= Rs. 20000, r=6%=0.06, n=2, t=1 year
∴, the amount received after the term of 1 year will be given by,
A=20000(1+
2
0.06
)
2×1
⇒A=20000(1+0.03)
2
⇒A=20000(1.03)
2
⇒A=Rs.21218
∴, the amount Sheetal will get after 1 year is Rs.21,218