Question

P=1000rupees ,R=5% . Find the amount in 6 years compounded for every two years​

Answer 1

Given

Principal Amount = Rs.1000

Annual Rate of Interest = 5%

Interest Calculation = Compounded every 2 years

To Find

Total amount after 6 years

Solution

The formula for Final Amount = $P(1+\frac{r}{n} )^{nt}$ where,

P = Principal Amount = Rs.1000

r = rate of interest = 5% = $\frac{5}{100}$ = .05

n =  number of times interest is compounded per time period =  .5 (Since interest is compounded once in two years).

t = number of time periods = 6

Hence Final Amount = $1000(1+\frac{.05}{.5})^{\frac{6}{2} }$ = $1000(1+.1)^{3}$ = Rs.1331

Hence the total amount after 6 years is Rs.1331