Question

find the amount if rs 2000 is invested for two years at 4% compounded half yearly.​

Answer 1

Answer:

The maturity amount will be Rs 2165

Step-by-step explanation:

Given : Invested amount = P = 2000 Rs

             Period T = 2 years

             Compound interest R = 4%

             Compounding frequency = N = half yearly = 2

             Maturity amount A = ?

Solution : Compounded amount A = P x (1+R/Nx100)^NT

                                                         = 2000 x (1+4/2x100)^2x2

                                                         = 2000 x (1+ 0.02)^4

                                                         = 2000 x $1.02^{4}$

                                                          = 2000 x 1.08

                                                         = 2165 Rs