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How much will a sum of rupees 24000 amount to in 2 years and 10% per annum compounded semi annually?
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How much will a sum of rupees 24000 amount to in 2 years and 10% per a...
Understanding Compound Interest
To calculate the amount of a sum when compounded semi-annually, we use the formula:
A = P(1 + r/n)^(nt)
Where:
- A = the amount of money accumulated after n years, including interest.
- P = the principal amount (the initial sum of money).
- r = annual interest rate (decimal).
- n = number of times that interest is compounded per year.
- t = the number of years the money is invested.
Given Information
- Principal (P) = 24000 rupees
- Annual Interest Rate (r) = 10% or 0.10 (as a decimal)
- Compounding Frequency (n) = 2 (since it is semi-annually)
- Time (t) = 2 years
Step-by-Step Calculation
1. Convert the Interest Rate:
- r/n = 0.10 / 2 = 0.05
2. Calculate nt:
- nt = 2 * 2 = 4 (since interest is compounded twice a year for 2 years)
3. Apply the Formula:
- A = 24000 * (1 + 0.05)^(4)
4. Calculate the Amount:
- A = 24000 * (1.05)^4
- A = 24000 * 1.21550625 (approximately)
- A ≈ 29172.15 rupees
Final Amount
After 2 years, a sum of 24000 rupees at an interest rate of 10% per annum compounded semi-annually will amount to approximately 29172.15 rupees.
To calculate the amount of a sum when compounded semi-annually, we use the formula:
A = P(1 + r/n)^(nt)
Where:
- A = the amount of money accumulated after n years, including interest.
- P = the principal amount (the initial sum of money).
- r = annual interest rate (decimal).
- n = number of times that interest is compounded per year.
- t = the number of years the money is invested.
Given Information
- Principal (P) = 24000 rupees
- Annual Interest Rate (r) = 10% or 0.10 (as a decimal)
- Compounding Frequency (n) = 2 (since it is semi-annually)
- Time (t) = 2 years
Step-by-Step Calculation
1. Convert the Interest Rate:
- r/n = 0.10 / 2 = 0.05
2. Calculate nt:
- nt = 2 * 2 = 4 (since interest is compounded twice a year for 2 years)
3. Apply the Formula:
- A = 24000 * (1 + 0.05)^(4)
4. Calculate the Amount:
- A = 24000 * (1.05)^4
- A = 24000 * 1.21550625 (approximately)
- A ≈ 29172.15 rupees
Final Amount
After 2 years, a sum of 24000 rupees at an interest rate of 10% per annum compounded semi-annually will amount to approximately 29172.15 rupees.
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How much will a sum of rupees 24000 amount to in 2 years and 10% per annum compounded semi annually?
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How much will a sum of rupees 24000 amount to in 2 years and 10% per annum compounded semi annually? for Class 8 2024 is part of Class 8 preparation. The Question and answers have been prepared according to the Class 8 exam syllabus. Information about How much will a sum of rupees 24000 amount to in 2 years and 10% per annum compounded semi annually? covers all topics & solutions for Class 8 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for How much will a sum of rupees 24000 amount to in 2 years and 10% per annum compounded semi annually?.
How much will a sum of rupees 24000 amount to in 2 years and 10% per annum compounded semi annually? for Class 8 2024 is part of Class 8 preparation. The Question and answers have been prepared according to the Class 8 exam syllabus. Information about How much will a sum of rupees 24000 amount to in 2 years and 10% per annum compounded semi annually? covers all topics & solutions for Class 8 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for How much will a sum of rupees 24000 amount to in 2 years and 10% per annum compounded semi annually?.
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