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

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