Question

Indu lent out 18000 for 2 years at 20% per album compounded annually. How much more could she earn, if the interest were compounded half- yearly?​

Answer 1

Amount →

If compound annually

If compound half yearly

Given that -

Principal (p) = rs 18000

Rate(r) = 20%

Time (n) = 2 years

1st case (annually)→

Amount = 18 ×12×120

Amount = rs 25920

2nd case ( half yearly) →

Amount = 18×11×11×11×1.1

Amount = rs 26353.8

Extra earning = 2nd case - 1st case

Extra earning = 26253.8 - 25920

Extra earning = rs 433.8

hope it helps

__________________________❤