Kanta deposited RS 40,000 for one year in a fixed deposit with a bank .If the bank pays 8% interest per annum and the interest is calculated half-yearly, what amount will she get after one year?
Answers
Answer:
The formula for compound interest, including principal sum, is:
A=P(1+
n
r
)
nt
Where:
A= the future value of the investment/loan, including interest
P= the principal investment amount (the initial deposit or loan amount)
r= the annual interest rate (decimal)
n= the number of times that interest is compounded per unit t
t= the time the money is invested or borrowed for
In our given problem,
P= Rs. 20000, r=6%=0.06, n=2, t=1 year
∴, the amount received after the term of 1 year will be given by,
A=20000(1+
2
0.06
)
2×1
⇒A=20000(1+0.03)
2
⇒A=20000(1.03)
2
⇒A=Rs.21218
∴, the amount Sheetal will get after 1 year is Rs.21,218
Step-by-step explanation:
Hey mate ,
This is your answer ,
The formula for compound interest, including principal sum, is:
A= P(1+ nr ) nt
) nt
) nt Where:
) nt Where:A= the future value of the investment/loan, including interest
P= the principal investment amount (the initial deposit or loan amount)
r= the annual interest rate (decimal)
n= the number of times that interest is compounded per unit t
t= the time the money is invested or borrowed for
t= the time the money is invested or borrowed forIn our given problem,
t= the time the money is invested or borrowed forIn our given problem,P= Rs. 20000, r= 6% = 0.06, n = 2, t = 1 year
1 year∴, the amount received after the term of 1 year will be given by,
A=20000(1 + 20.06 ) 2×1
20.06 ) 2×1
20.06 ) 2×1 ⇒A=20000(1+0.03) ^2
2
2 ⇒A=20000(1.03) ^2
⇒A=Rs.21218
⇒A=Rs.21218∴, the amount Sheetal will get after 1 year is Rs.21,218
Hope it helps
Thank you
Have a great time ahead