Question

What is the difference between the compound interests on rs. 5000 for 112 years at 4% per annum compounded yearly and half-yearly? 2. Find the compound interest and the amount on $ 4,000 at 4% per annum for 1 year when interest is compounded half-yearly. 3. Calculate the amount when sum of $ 4,800 is invested at 8% per annum for 4 years, the compound interest being compounded half-yearly. 4. In what time will a sum of $ 8,000 become $ 9,261 at the interest rate of 10% per annum if the interest is compounded six-monthly?

Answer 1

Answer:

Abbreviated as Amount = P * [1 + R/100]t, when compounded annually. Sometimes, the interest is also calculated half-yearly or quarterly.