Question

calculate the difference between the compound interest on $250000for 2 years at 10%per annum when compounded half yearly and quarterly

Answer 1

Half yearly:-

250000(1+10/200)^2

250000(210)^2

250000x210/200x210/100

25x210x210

1102500

CI=1102500-250000

852500//

Quaterly:-

250000(1+10/400)^4