Neeraj lend Rs- 65536 for 2 years at 25-2

We know that A = p( 1 + rn)nt r = 12.5% #160; = 0.125 p = 65536 t = 2 years n=2 if compounded twice in a year #160; n=1 if co ...

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Standard VII

Mathematics

Simple Interest

Neeraj lend R...

Question

Neeraj lend Rs. 65536 for 2 years at $\frac{25}{2}$ % per annum compounded annually. How much more would he earn if the interst were compounded half yearly?

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Solution

We know that
$A = p (1 + \frac{r}{n}) n t$
$r = 12.5 % = 0.125$
$p = 65536$
$t = 2 y e a r s$

$n = 2$ if compounded twice in a year
$n = 1$ if compounded annually

If compounded annually
$\begin{matrix} A = 65536 {(1 + 0.125)}^{2} = 82944 \end{matrix}$

If compounded half yearly
$\begin{matrix} A = 65536 {(1 + \frac{0.125}{2})}^{4} = 83521 \end{matrix}$
The amount of interest will increase by $= 83521 - 82944 = 577$

Hence, this is the answer.

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Neeraj lend Rs. 65536 for 2 years at 252% per annum compounded annually. How much more would he earn if the interst were compounded half yearly?

We know thatA=p(1+rn)ntr=12.5%=0.125p=65536t=2yearsn=2 if compounded twice in a year n=1 if compounded annuallyIf compounded annuallyA=65536(1+0.125)2=82944If compounded half yearlyA=65536(1+0.1252)4=83521The amount of interest will increase by =83521−82944=577Hence, this is the answer.

Neeraj lend Rs. 65536 for 2 years at $\frac{25}{2}$ % per annum compounded annually. How much more would he earn if the interst were compounded half yearly?