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

Principle = 65536, Time = 2years , Rate = 12 1/2%
Amount at compounded half yearly = P( 1 + R/ 2×100)^T×2
= 65536( 1 + 12/2×2×100)^2×2
= 65536( 1 + 3/100 )^4
= 65536 (103/100)^4
= 65536 103/100×103/100×103/100×103/100.
= 73,761.3454.
Compound Interest = Amount - Principle
=73,761.3454 - 65536 =8,225.3454

Answer 2

Principle = 65536, Time = 2years , Rate = 12 1/2%
Amount at compounded half yearly = P( 1 + R/ 2×100)^T×2
= 65536( 1 + 12/2×2×100)^2×2
= 65536( 1 + 3/100 )^4
= 65536 (103/100)^4
= 65536 103/100×103/100×103/100×103/100.
= 73,761.3454.
Compound Interest = Amount - Principle
=73,761.3454 - 65536 =8,225.3454