find the amount and compound interest on Rs 525 for 2 year 5 month at 8% per annum payable semi annually (Ans:624.41,99.41)
Answers
Answered by
10
The compound interest accumulation formula is :
P. (1 + i) ⁿ = A
P = Principle amount
i = interest rate
n = Time in years
A = Accumulated amount
CALCULATIONS
1.) Amount
n = 2,5/12 years = 29/12 years × 2 = 29/6
i = 8%/2 = 4%
P = 525
NOTE : we multiply the time by two and divide the rate by two since the interest is compounded semiannually.
525 × (1.04)^29/6 = 1.20873 × 525 = 634.58
2.) Compound interest
Interest = Accumulated value - principle
634.58 - 525 = 109.58
Answered by
1
Answer:
634
Step-by-step explanation:
amount =principal*(1-i)
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