For calculation of interest compounded half yearly, keeping the principal same, which one of the following is true. (a) Double the given annual rate and half the given number of years. (b) Double the given annual rate as well as the given number of years. (c) Half the given annual rate as well as the given number of years. (d) Half the given annual rate and double the given number of years.
For calculation of interest compounded half yearly, keeping the principal same, which one of the following is true. (a) Double the given annual rate and half the given number of years. (b) Double the given annual rate as well as the given number of years. (c) Half the given annual rate as well as the given number of years. (d) Half the given annual rate and double the given number of years.
Answer: (d) Half the given annual rate and double the given number of years.
Compound interest is the interest calculated on the principal and the interest accumulated over the previous period. The compound interest formula is given below:
Compound Interest = Amount – Principal
Here, the amount is given by:
\(A = P\left ( 1 + \frac{R}{n} \right )^{nt}\)
Where,
A = amount
P = principal
R = rate of interest
n = number of times interest is compounded per year
t = time (in years)
When interest is compounded half- yearly, then
T = 2T = 2n
Now, the amount will be
\(A = P\left ( 1 + \frac{R}{200} \right )^{2n}\)
C = A – P
Answer: (d) Half the given annual rate and double the given number of years.
Compound interest is the interest calculated on the principal and the interest accumulated over the previous period. The compound interest formula is given below:
Compound Interest = Amount – Principal
Here, the amount is given by:
\(A = P\left ( 1 + \frac{R}{n} \right )^{nt}\)Where,
A = amount
P = principal
R = rate of interest
n = number of times interest is compounded per year
t = time (in years)
When interest is compounded half- yearly, then
T = 2T = 2n
Now, the amount will be
\(A = P\left ( 1 + \frac{R}{200} \right )^{2n}\)C = A – P
