Problem: How much interest will Tk. 2000 earn at annual rate of 8% in one year if the interest is compounded every 6 months?
View all: BANK ASIA LTD | WRITTEN QUESTION SOLVE(MATH) | 2005
Correct Answer: TK 1633.2 (approx.)
Explanation:
Given, Capital = 2000 & rate = 8%
We know, Amount = FV = P$(1+\frac{r}{m})^{nm}$
= 2000$(1+\frac{8}{2×100})^{2×1}$
=2000$(\frac{104}{100})^{2}$
= Tk. 2163.2
Interest earned = (2163.2 — 2000) = Tk. 163.2