Find the interest rate when R280 is invested for 1 year 6 months year at a compound interest rate of 12.5 % per year. The interest is accredited/ accumulated every 6 months?
Question: Find the interest rate when R280 is invested for 1 year 6 months year at a compound interest rate of 12.5 % per year. The interest is accredited/ accumulated every 6 months?
To find the interest rate when R280 is invested for 1 year 6 months year at a compound interest rate of 12.5 % per year, we can use the formula for compound interest:
Compound Interest = Amount – Principal
where,
Amount = Principal * (1 + Rate / Number of times interest is compounded per year) ^ (Number of times interest is compounded per year * Time)
Principal = R280
Rate = 12.5% = 0.125
Number of times interest is compounded per year = 2 (every 6 months)
Time = 1.5 years
Substituting these values in the formula, we get:
Compound Interest = R280 * (1 + 0.125 / 2) ^ (2 * 1.5) - R280
Compound Interest = R280 * (1.0625) ^ 3 - R280
Compound Interest = R280 * 1.201 - R280
Compound Interest = R336.28 - R280
Compound Interest = R56.28
Therefore, the interest rate is R56.28.
Rjwala is your freely Ai Social Learning Platform. here our team solve your academic problems daily.
0 Komentar
Post a Comment