Question

find the compound interest for 1000 for 4 years at 5% per annum when it is compounded half yearly​

Answer 1

Answer:

p(1+\fraction{r}{100} ){t}  

1000(1 +  \fraction{4}{100} ){3}

on t we write 3 because in compounded half yearly we have to distribute years so one and half year equal to 3 half years

1000  \times  \fraction{104}{100}  \times  \fraction{104}{100}  \times  \fraction{104}{100}  

1000( \fraction{1}{1}  +  \fraction{4}{100}) {3}

\fraction{1124864}{1000}  

1124.864

so we subtract the principal value by amount so

1124.86 - 1000

124.86

so 124.86

Explanation: