Question

Jose
deposited 200,000 rupees in a bank
which pay 8% compounded
annually.Mohanan deposited
same amount in a bank where interest is compounded half yearly at 8%annual rate.After one year who gets more amount as interest?how much
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Answer 1

Answer:

calculation for jose amount :

pv = 200000

i = 0.08

n = 1

Fv = Pv (1+i)ñ

= 20000 (1+0.08)¹

= 216000

calculation for mohanan amount :

Pv = 200000

n = 2

i = 8/2×100 = 0.04

Fv = Pv (1+i)n

= 200000 (1+0.04)2

= 200000 (1.04)²

= 200000 (1.0816)

= 216320 rs

Mohanan get more 320 rs than jose

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