Calculate the amount , if a sum of Rs 15,000 is invested for 1year at 8% p.a , interest being compounded half-yearly
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1
Answer:
16224
Step-by-step explanation:
when rate percentage per annum is being compounded n-yearly, then divide rate by n and calculate compound interest normally for n times(or years).
8/2 = 4%
calculate amount for 2 times (or years)
A = P*(1 + r/100)^n = 15000*(1 + 4/100)²
= 15000*(1 + 1/25)² = 15000*(26/25)²
= 16224
SHORT METHOD
4% = 4/100 = 1/25
calculate CI for two years using tree method
15000. 1st year. 2nd year
15000*1/25. 15000*1/25
15000*(1/25)²
which is = 600 + 600 + 24 = 1224
Add this to P
A = 15000 + 1224 = 16224
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