Question

if the interest is compounded half yearly calculate the amount when the principal is 7400 the rate of interest is 5% and the duration is one year explain with full solve ​

Answer 1

Explanation:

principal amount(p)= ₹7400

rate= 5% = 5/2%

time= 1 year = 2 year

amount= ?

amount= p(1+r/100)^t

=7400(1+5/2/100)^2

=7400(1+5/200)^2

=7400(1+1/40)^2

=7400(40+1/40)^2

=7400(41/40)^2

=7400×41/40×41/40

=₹7774.665

hence, amount is ₹7774.665