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Find the total amount and total interest after eight months if the interest

is compounded every four months.
Principal = 5000
Rate of interest = 30% per annum
Total amount =
Total interest=

2 Answers

1 vote
To calculate the total amount and total interest after eight months, we first need to calculate the interest rate per four months, as the interest is compounded every four months.

Interest rate per four months = (30% per annum)/3 = 10% per four months

Number of times the interest is compounded in eight months = 8/4 = 2

Using the formula for compound interest, we can calculate the total amount and total interest as follows:

Total amount = Principal x (1 + (rate/n))^nt
where:
Principal = 5000
rate = 30% per annum = 10% per four months
n = 4 (interest is compounded every four months)
t = 2 (two four-month periods in eight months)

Total amount = 5000 x (1 + (0.10/4))^2*4 = 5000 x (1.025)^8 = 7107.47

Therefore, the total amount after eight months is 7107.47.

Total interest = Total amount - Principal = 7107.47 - 5000 = 2107.47

Therefore, the total interest after eight months is 2107.47.
User Galuoises
by
7.8k points
4 votes
Principal- Rs.5000
Rate- 30%
Time 8months =2(4months)
Hope this will help u
Find the total amount and total interest after eight months if the interest is compounded-example-1
User Oleksii Masnyi
by
7.9k points

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