Bank A is offering 3%,compounded annually, savings account guaranteed for two years. Bank B is offering 2 % compounded half yearly, savings account guaranteed for three-half years.Which bank would yield the most on a principal of ₹5600? What is the amount difference between the two bank accounts?
Answer is-Bank B,₹62.82
but I don't know how to get the answer
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Answered by
21
Answer:
Rs 1.7248
Step-by-step explanation:
Hi,
Given the principle amount P = 5600
Bank A is offering 3% compounded annually
After a period of 2 years =P(1 + R/100)²
= 5600(1.03)² = 5941.04
Bank B is offering 2% compounded half yearly
After a period of 3-half years
= P(1 + r/100)³
=5600(1.02)³
=5942.7648
Bank B would yield the most on principle of Rs 5600.
Amount Difference = 5942.7648 - 5941.04
= Rs 1.7248.
Hope, it helped !
Answered by
2
Answer: Bank B ; ₹62.8
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