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Biswa decided to save money for a trip. He waschecking some investment options for saving,but his friend Kalia suggested to check if he isinterested in compound interest. Biswa found abank that offers 6% compound interestcalculated on a half-yearly basis. To know indetail, Biswa planned to deposit Rs. 20000 eachon 1st of January and 1st of July of that sameyear. But Biswa is not that great at Math! Canyou help him know, what amount he would havegained through interest by the end of the year? |
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Answer»
here P= 20000 r= 6% = 6/2= 3% half yearly t= 1/2 years N= 1/2×2 = 1 A= P(1+r/100)¹ = 20000(1+6/100)¹ =20000×1.03 =20600 Now after 6 months he deposited ANOTHER 20000 So P= 20600+20000 = 40600 r= 6%= 3% n= 1 A= 40600( 1+ r/100)¹ = 40600(1+0.03) = 40600×(1.03) = 41818 Amount gained(C.I)= 41818-40000= 1818 Also, you can do EM together by taking the first principle anually + second principle half yearly. |
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