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zloy xaker [14]
4 years ago
13

How much more interest will maria receive if she invests 1000$ for one year at x % annual interest, compounded semianually, than

if she invest 1000$ for one year at x percent annual interest, compounded annually?
A. 5x
B. 10x
C. x^2/20x220
D. x^2/40
E. (10x+x^2/40)
Mathematics
1 answer:
jenyasd209 [6]4 years ago
4 0

Answer:

D. \frac{x^{2} }{40}

Step-by-step explanation:

Compound interest formula is:

A=p(1+\frac{r}{n})^{nt}

When compounded annually;

A=1000(1+\frac{x}{100})^{1}

=> A=1000(1+\frac{x}{100})   ....(1)

When compounded semi annually means rate = x/2 and n = 2.

A=1000(1+\frac{x}{2\times100})^{2}

=> A=1000(1+\frac{x}{200})^{2}   .... (2)

Now, subtracting 1 from 2 we get ;

1000(\frac{x^{2} }{40000} )

= \frac{x^{2} }{40}

Hence, option D is correct.

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The graph in the attached figure

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