Question

If the interest is compounded half yearly, calculate the amount when the principal is 7400 , the rate of interest is 5% and the duration is 1 year.

Answer 1

It is given that
Principal (P) = 7400
Rate of interest (r) =5%
Period (n) = 1 year
We know that
A = $P(1+r/(2\times 100){)}^{2\times n}$
Substituting the values
=$7400(1+5/200{)}^2$
By further calculation
= $7400\times 205/200\times 205/200$
= $7774.63$