Question

Find the amount of compound interest and effective rate of interest if an amount of 20000 is deposited on bank for one year at the rate of 8% per annum compounded semi annually​

Answer 1

Step-by-step explanation:

A = ₹20000

R = 8%

r = 4% (=8/2 : semi annual)

T = 1 yr

N = 2 (=12/6 : semi annual)

Formula : A = P(1+r/100)^N

A = 2000(1+4/100)^2

A = ₹21632