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

We know that A = P(1+r/100)^n

                           = 65536(1+25/200)^2

                           = 82944.(Annually)

We know that A = P(1+r/100)^n

                           = 65536(1+25/400)^4

                           = 65536(425/400)^4

                           = 83521.

The amount he earns = 83521 - 82944

                                      = 577.