Question
If P is the amount invested at 5% p.a compounded half
yearly for 2 years, what would be the amount received at the end of 2 years?Solution
When compounded half yearly, A = P (1 + r / 200)2t = P (1 + 5 / 200)2x2 = P (1 + 5 / 200)4 = P (205 / 200)4 A = P(1.025)4
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