How much interest will Tk. 2000 earn at an annul rate of 8% in one year if the interest is compounded every six months?
How much interest will Tk. 2000 earn at an annul rate of 8% in one year if the interest is compounded every six months? Correct Answer Tk. 163.20
Here, P = 2000 Tk; r = 0.08; n = 1 and m = 2 C = P(1 + r/m)n×m = 2000(1 + .08/2)1×2 = Tk. 2163.20 Interest is (2163.20 - 2000) = Tk. 163.20