SOLUTION: A businessman deposited ₦500,000 in a bank account at 20% per annum compound interest. If the interest is added quarterly. Find the compound interest on the deposit at the end of

Algebra ->  Test -> SOLUTION: A businessman deposited ₦500,000 in a bank account at 20% per annum compound interest. If the interest is added quarterly. Find the compound interest on the deposit at the end of      Log On


   

Question 1205127: A businessman deposited ₦500,000 in a bank account at 20% per annum compound interest. If the interest is added quarterly. Find the compound interest on the deposit at the end of 1 year 6 months.
Answer by ikleyn(52756) About Me  (Show Source):
You can put this solution on YOUR website!
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A businessman deposited ₦500,000 in a bank account at 20% per annum compound interest.
If the interest is added quarterly. Find the compound interest on the deposit
at the end of 1 year 6 months.
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The interest on the deposit at the end of 1 year 6 months is

    I = 500000%2A%281%2B0.2%2F4%29%5E6-500000 = ₦170,047.82  (rounded to two decimal places).    ANSWER

Solved.

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To see many similar and different solved problems on discretely compounded interest,
see the lessons
    - Compound interest percentage problems
    - Problems on discretely compound accounts
in this site, and learn the subject from there.

After reading these lessons,  you will tackle such problems on your own without asking for help from outside.