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

Algebra ->  Percentage-and-ratio-word-problems -> 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      Log On


   

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) About Me  (Show Source):
You can put this solution on YOUR website!
1) Interest after 1 year = 50000*.09 = 4500
2nd period 8 months; pro rata 8%2F12+ of 9% is 6%
6% of 54500 is 3270
Total interest is 7770
Total 57770

2) rate for 2 years compounded annually is 1.2%5E2+=+1.44+
If compounded 6 monthly there are 4 intervals
6 monthly rate R
For same Rate +1.44+=+%28+1+%2B+R%2F100%29%5E4+
Then +1.44%5E0.25+=+1+%2B+R%2F100+
Rearrange +R+=+%281.44%5E0.25+-+1%29+%2A+100+
= (1.0954 -1 ) * 100
= 9.54 % each interval
Check 1.0954%5E4+=+1.44