find the amount of compound interest and effective rate of interest if an amount of 20000 is deposited in a bank for one year at the rate of 8%per annum compounded semi annually. What is effective rate of interest?
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Answer:
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
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