Bank A is offering a 3% compounded annually savings account granted for 2 years Bank be is offering 2 % compounded half yearly savings account granted for 3 half years which bank would lead the most on a principle of 5600 what is the amount difference between the two bank
accounts
pls help
Answers
Answer:
Bank- A:
Compound interest
=amount
= P (1 + R/100) to the power n.
=5600(1+3/100)to the power 2.
=5600*1+3/100*3/100.
= the two zeros in 5600 will cut the two zeros in 100 which is the denominator in the fraction 3/100.
=56*4*3/100
=56*12/25
Because 100 in the fraction 3/100 will cut 4 while multiplying and we know that 4*25 = 100.
= 672/25
= Rs. 26.88
So, as we know that Compound interest = p(principle) -a(amount)
= 5600 - 26.88
= Rs. 5573.12
Bank B : in same way
= as we know that compounded half yearly = p(1+ rate /2/100)to the power n.
= 5600(1+2/2(=1)/100)to the power 2*3 =6.
= 5600*1+1*1*1*1*1*1.
= 5600* 2
= Rs. 11,200
A-p
=11200-5600
= Rs. 5600
Therefore, Bank A =5573.12 lesser than Bank B = 5600
Answer : Bank B