Question

a family saved 40000 in Savings Bank that pays compound interest half-yearly at a rate of 10% per annum what is amount in the family's account at the end of 2 years and what will be the amount in their account ​

Answer 1

Step-by-step explanation:

WE know

• A=P(1+r/n)^nt, where A is the amount, P is the principle r is the rate , t is the time and n is the number of interest compounded per unit time

so by suing this formula

• A=40000(1+0.1/2)^2*2
• A=40000(1.2155)
• or, A=48620.25
• therefore the amount is Rs.48620.25

Answer 2

To find the amount in a family's savings account after 2 years with a principal of $40,000 and a 10% per annum interest rate compounded half-yearly, the compound interest formula is used, resulting in $48,620.25 at the end of 2 years.

Step-by-step explanation:

A family saved $40,000 in a savings bank that pays compound interest half-yearly at a rate of 10% per annum. To calculate the amount in the family's account at the end of 2 years, we use the formula for compound interest:

A = P(1 + r/n)^nt

Where:

A is the amount of money accumulated after n years, including interest.

P is the principal amount (the initial amount of money).

r is the annual interest rate (decimal).

n is the number of times that interest is compounded per year.

t is the time the money is invested for, in years.

In this case, P = $40,000, r = 10/100 = 0.10, n = 2 (since the interest is compounded half-yearly), and t = 2 years.

Plugging these values into the formula, we get:

A = 40,000(1 + 0.10/2)^2*2

A = 40,000(1 + 0.05)^4

A = 40,000 * (1.05)^4

A = 40,000 * 1.21550625

A = $48,620.25

Therefore, the amount in the family's account at the end of 2 years is $48,620.25.