Question

M/s heera associates let out Rs400000 for one year at 16% per annum compounded annually. How much they could earn if the intrest is compounded half -yearly

Answer 1

Hi !!!

Here is your answer,

Principal (P) = Rs.400000
Rate of interest (R) = 16% per. annum

Rate of interest (R) per half yearly = 16/2 = 8%

Time (n) = 1 year = 2 half years


$Amount = P {(1 + \frac{R}{100} )}^{n} \\ \\ \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: = 400000 {(1 + \frac{8}{100}) }^{2} \\ \\ \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: = 400000 {(1 + \frac{2}{25}) }^{2} \\ \\ \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: = 400000 {( \frac{25 + 2}{25}) }^{2} \\ \\ \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: = 400000( { \frac{27}{25} )}^{2} \\ \\ \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: = 400000 \times \frac{729}{625} \\ \\ \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: = 466560$

Amount = Rs. 466560

C.I = Amount - Principal
C.I = 466560 - 400000
C.I = Rs. 66560

Hope it helps.

Answer 2

Answer:

Step-by-step explanation: