Question

Ronak deposited rupees 8000 at 10% per annum for 2 years compounded annually.what is the compound interest received by Raunak? how much more money will Raunak have in his account at the end of 2 years if it is compounded half-yearly ?

Answer 1

Compound interest accumulation factor :

P × (1 + i)ⁿ

P = deposited amount = 8000

i = 10%

n = 2 years

1.) Compounded annually

8000 × (1.10)² = 9680

2.) Compounded semiannually

i = 10/2 = 5%

n = 2 × 2 + 4

8000 × (1. 05)⁴ = 9724.05

Difference :

9724.05 - 9680 = 44.05

Answer 2

Answer:

44.05

Step-by-step explanation:

CI for 1st year= 8000((1+10/100)-1)

=800

CI for 2nd year=800((1+10/100)-1)

=80

=>800+80=880

total CI= 800+880=1680

A=8000+1680

=9680

for semi annually

r=10/2=5%

CI= 8000((1+5/100)^4-1)

=8000((105/100×105/100×105/100×105/100)-1)

8000(194481/160000-1)

=8000×34481/160000

=1724.05

8000+1724.05=9724.05

9724.05-9680=44.05