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Question
How much interest will TK. 1000 earn in one year at the annual interest rate of 20% if interest rate is compounded every 6 months ?
200
205
110
208
210
ANSWER : 5
Descrption
<p>p' = p ( 1 + r/m)<sup>nm</sup></p> <p> = 1000 (1 + .20/2)<sup>2</sup></p> <p> = 1000 * (1.1)<sup>2</sup> = 1210</p> <p>p, - p = 1210 - 1000 = 210</p>
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