Word Problem 13
Problem 13: A saving bank pays interest at 4% per annum and interest being calculated every 6 months. A sum of Rs 100 was deposited on January 1, 1973. After one year the amount will be;
a. Rs 104 b. Rs 104.40 c. Rs 104.04 d. Rs 102.02
simple arithmetic questions and answers
P(principal or initial amount) = Rs 100
R(rate) = 4% pa
Interest paid =every six months
T(term) =1 year
A (amount after the term) =?
This problem can be solved using compound interest formula !
The formula is ;
Here n is the number of terms or transactions which will be 2 in one year, so ;
R=4/2=2% for six months term each
Putting values in the formula;
So, the option c is correct
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