SOLUTION: A per invests 10000 for two years at a certain rate of interest compounded annually. At the end of one year this sum amounts to 11200. Calculate:
(i). the rate of interest per ann
Algebra.Com
Question 516260: A per invests 10000 for two years at a certain rate of interest compounded annually. At the end of one year this sum amounts to 11200. Calculate:
(i). the rate of interest per annum
(ii). the amount at the end of second year.
Answer by mananth(16946) (Show Source): You can put this solution on YOUR website!
i= (fv/pv)^(1/n) -1
fv= 11200
pv= 10000
n= 1 1.67
i=( 11200 / 10000 )^ 1 / n - 1
i= 1.12 ^ 1 / 1 - 1 9.71
i= 0.03 1.94
i= 3 %
------
Principal P = 10000
Amount= A
years=n 2.00
compounded 1 times a year t
Rate = 3.00 0.03
Amount = P*((n+r)/n)^n*t
Amount = = 10000 *( 1 + 0.03 )^ 2 * 1
Amount = 10000 *( 1 + 0.03 )^ 2
10000 *( 1.03 )^ 2
Amount = $10609
RELATED QUESTIONS
A man invest rupees 10000 for 3 years at a certain rate of interest compounded annually... (answered by Theo)
How much must be invested at the end of each year, for 4 years, to achieve an amount of... (answered by jim_thompson5910)
Nate invests $3000 at a 6% interest rate for 3 years. If interest is compounded annually, (answered by rfer)
A principal of $50,000 has been invested at an interest rate of 9 percent per year... (answered by ikleyn)
A financial advisor invested a total of $10000 , part at 7.5% per annum compounded... (answered by mananth)
a person invests rs 1000 at 10% compound interest of two years.then he invests the... (answered by addingup)
Please help w/ the following: Thank you
The amount of money A accured at the end of (answered by checkley71)
Find the lump sum deposited today that will yield the same total amount as this yearly... (answered by nyc_function)
Nancy invests $100 in one account for 10 year at a 9% interest rate compounded annually,... (answered by rfer)