find the amount on RS 256 in one year at 12 1/2 % per annum when the interest is compounded half yearly
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Answered by
19
We know that
Compound Interest (CI)
= P(1+i)^n
Where P= Principal amount, i= Rate of interest Per annum , n= no.of periods..
Given
Principal Amount (P) = 256
Time = 1 year ..
n =Compounded half yearly. so....1year × 2 = 2 periods
Rate of interest Per annum= 12 1/2 %
i = 12 1/2%... compounded half yearly so 12 1/2%/2
Subsitute this information in the formula..
Compound Interest
= 256(1 + (12 1/2% /2))^2
= 256( 1 + 0.125/2 ) ^2
= 256(1+0.0625)^2
=256(1.0625)^2
=256(1.125)
=272.0 625
Compound Interest (CI)
= P(1+i)^n
Where P= Principal amount, i= Rate of interest Per annum , n= no.of periods..
Given
Principal Amount (P) = 256
Time = 1 year ..
n =Compounded half yearly. so....1year × 2 = 2 periods
Rate of interest Per annum= 12 1/2 %
i = 12 1/2%... compounded half yearly so 12 1/2%/2
Subsitute this information in the formula..
Compound Interest
= 256(1 + (12 1/2% /2))^2
= 256( 1 + 0.125/2 ) ^2
= 256(1+0.0625)^2
=256(1.0625)^2
=256(1.125)
=272.0 625
Answered by
0
Answer:
There are 2 half years in 1 year
So compounding has to be done 2 times
A=P (1+r/100)^n
Rate of interest =half of 12 1/2% =6.25%
256(1+6.25/100)^2
=256* 1.0625 * 1.0625
=289
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