Question

Biswa decided to save money for a trip. He was checking some investment options for saving, but his friend Kalia suggested to check if he is interested in compound interest. Biswa found a bank that offers 6% compound interest calculated on a half-yearly basis. To know in detail, Biswa planned to deposit Rs. 20000 each on 1st of January and 1st of July of that same year. But Biswa is not that great at Math! Can you help him know, what amount he would have gained through interest by the end of the year?

Answer 1

Answer:

50555.55

Step-by-step explanation:

he will deposit 20000 in the bank

so after 6 month his compound interest will be 6% of what he deposited

therefore 20000 upon 6 =3333.33

therefore total money after 6 month that is 20,000 + 3333.33=23333.33

now he will deposit another 20000 therefore total money 23333.33+20000=43333.33

now we will get compound interest on that money therefore amount of money he will obtained after end of the year will be

6% of 43333 3.33 will be added previous money

therefore money he will obtain after the end of year equal to 43333.33+7222.22 equal to 5055 5.55