SOLUTION: 1)how much will 50,000 amount to in 1year and 8 months at 9%pa compounded annually
2)a sum of money was lent for 2 years at 20% compounded annually.if interest is compounded hal
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Question 798532: 1)how much will 50,000 amount to in 1year and 8 months at 9%pa compounded annually
2)a sum of money was lent for 2 years at 20% compounded annually.if interest is compounded half yearly find the sum (take sum as 100 and find the interest
Answer by Finavon(81) (Show Source): You can put this solution on YOUR website!
1) Interest after 1 year = 50000*.09 = 4500
2nd period 8 months; pro rata of 9% is 6%
6% of 54500 is 3270
Total interest is 7770
Total 57770
2) rate for 2 years compounded annually is
If compounded 6 monthly there are 4 intervals
6 monthly rate R
For same Rate
Then
Rearrange
= (1.0954 -1 ) * 100
= 9.54 % each interval
Check
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