Neeraj lent Rs. 65536 for 2 years at 25/2 % per annum, compounded annually. How much more could he earn if the interest were compounded half-yearly ?
Find out this answer including interests.
Don't answer unnecessarily.
Otherwise your answer will be reported.
Answers
Answered by
1
Step-by-step explanation:
To calculate the amount, if interest were compounded annually,
A
=P(1+
100
R
)
n
=65536(1+
100×2
25
)
2
=65536(
8
9
)
2
=1024×81
=Rs. 82944
To calculate amount if interest were compounded half-yearly, rate of interest will become
4
25
% and value of n will be 4,
A
=P(1+
100
R
)
n
=65536(1+
100×4
25
)
2
=65536(
16
17
)
4
=17×17×17×17
=Rs. 83521
Clearly, we can observe that amount compounded half-yearly is more than compounded annually. So, the difference between the two amounts will be the extra amount that Neeraj can earn,
Extra Interest
=83521−82944
=Rs. 577
Similar questions