Discuss Forum
1. How much interest will TK. 2000 earn at an annual rate of 10% in one year if the interest is compounded every 6 months ?
- A. 200
- B. 200
- C. 200
- D. 200
Answer: Option D
Explanation:
6 month interest rate = 10/2 % = 1/20
Interest = C - P
= p(1 + r)^n - p
= 2000(1 + 1/20)^2 - 2000
= 2000*21/20*21/20 - 2000
= 2205 - 2000
= 205
Interest = C - P
= p(1 + r)^n - p
= 2000(1 + 1/20)^2 - 2000
= 2000*21/20*21/20 - 2000
= 2205 - 2000
= 205
Post your comments here: