Question

find the amount to be paid at the end of 1 year on 40000 at 5% per annum compounded half yearly​

Answer 1

Answer:

Given

Case-1

Principal = Rs. 4000

Rate = 5%

Time = 1 year

Interest compounded half yearly.

Case-2

Principal = Rs. 2000

Rate = 40%

Time = 1 year

Interest compounded quaterly.

Formula:

A = P (1 + r/100)t

Calculation:

For case-1

r = 5/2% = 2.5%

Time = 2

According to the formula

A = 4000 × (102.5/100) × (102.5/100)

⇒ A = 4,202.5

CI = 4,202,5 - 4,000 = 202.5

For case-2

r = 40/4 = 10%

Time = 4

According to the formula

A = 2000 × (110/100) × (110/100) × (110/100) × (110/100)

⇒ A = 2,928.2

CI = 2,928.2 - 2,000 = Rs. 928.2

Total interest = 202.5 + 928.2 = Rs. 1,130.70

∴ The total interest is Rs. 1,130.70