Question

Which of the following is the interest on $6000 at 6% compounded semiannually for eight years?

Answer 1

Answer:  

The interest compounded semiannually for eight years on the amount $6000 is $9628

Solution:  

From question given that amount = $6000

Interest rate = 6%

Number of years = 8 years

We have to find the interest on $6000 at 6% compounded semiannually for eight years.

When interest is compounded Half-yearly / semiannually, the compound interest is given as:

$\text {COMPOUND INTEREST}=P\left\{1+\frac{\frac{R}{2}}{100}\right\}^{2N}$

Where, P = principal amount

R = rate per annum

N = Number of years

Compound interest (C.I) $=6000\left\{1+\frac{\frac{6}{2}}{100}\right\}^{16}$

$=6000\left\{1+\frac{3}{100}\right\}^{16}$

$=6000\{1.03\}^{16}$

$= 6000 \times 1.6047$

= 9628.23

Hence the interest compounded semiannually for eight years is $9628

Answer 2

Answer:

9628.24

Step-by-step explanation:

=6000*1+(0.06/2)

=6000 * 1.03^16

=6000*1.604706

=9628.24