Question

Maria invested ₹ 12000 in a business. She would be paid interest at 6% per

annum compounded annually. Find

(i) The amount credited against her name at the end of second year.

(ii) The amount credited to her at the end of second year if the interest is

compounded half yearly​

Answer 1

Answer:

i)Rs. 13483.20 & ii)Rs. 13506.11

Step-by-step explanation:

i) Sum = Rs. 12000

Rate p.a. = 6%

Time = 2 years

Amount = 12000(1 + 6/100)^2 = 12000 × 106/100 × 106/100 = Rs. 13,483.20

ii)Sum = Rs. 12000

Rate p.a. = 6%

Rate per half year = 3%

Time = 2 years = 4 half years

Amount = 12000(1 + 3/100)^4 = 12000 × 103/100 × 103/100 × 103/100 × 103/100 = 13,506.10572 = Rs. 13506.11