Question

Neeraj lent 65536 for 2 yrs at 12 1/2%per annum compounded annually .how much more could be earn if the interest were compounded half yearly

Answer 1

annually compound= 82944
half yearly compound= 83521
difference = 577 this much more you'll get

Answer 2

Answer:

He could earn Rs.577 more  if the interest were compounded half yearly

Step-by-step explanation:

First case

Principal = Rs.65536

Rate = 12.5% = 0.125

Time = 2 years

n = no. of compounds per year = 1

$A = P(1+\frac{r}{n})^{nt}$

$A = 65536(1+0.125)^2$

$A =82944$

Second Case:

Principal = Rs.65536

Rate = 12.5% = 0.125

Time = 2 years

n = no. of compounds per year = 2

$A = P(1+\frac{r}{n})^{nt}$

$A = 65536(1+\frac{0.125}{2})^{2 \times 2}$

$A =83521$

Difference = 83521-82944 =Rs.$$577

Hence He could earn Rs.577 more  if the interest were compounded half yearly