Question

find the difference between compound interest on ₹16000 for
1
1 — years at 10% p.a when
2
compound annually and when compounded semiannual. ​

Answer 1

Step-by-step explanation:

ANSWER

P=Rs.16,000

A

n

=Rs.18,522

i=10×1/2%=5%=0.05

n=?

We have A

n

=P(1+i)

n

18,522=16,000(1+0.05)

n

18,522/16,000=(1.05)

n

(1.157625)=(1.05)

n

(1.05)

3

=(1.05)

n

n=3 Therefore time period of investment is three half years i.e., 1.5 years.