Question

A saver deposits N240 000 in a bank which pays compound interest at 9½% per annum half yearly. Find the amount in the bank at the end of one year.​

Answer 1

N263,341.50

Explanation:

The value of the account is given by the formula ...

A = P(1 +r/n)^(nt) . . . . principal P at rate r for t years compounded n times per year

Using the given values in the formula, we find the bank balance to be ...

N263,341.50