Pls help me solve 5.a and 5.b
1 answer:
You might be interested in
Answer:
$1480.24
Step-by-step explanation:
This will be solved by the formula:
Where
FV is the future value (what we are looking for)
I is the initial amount (which is $1000)
r is the rate of interest per period (8% is annual interest, but the period is SEMI-ANNUAL, that's 6 months, half of yearly. So r would be half of 8%, which is 4% or r = 0.04)
t is the times compounding occurs in the whole time (The whole time period is 5 years, but compounding occurs semi-annually, so 5*2 = 10 times. Thus, t = 10)
<em>plugging the info into the formula we will get our answer.</em>
<em></em>
Answer:
Rs 42000 and Rs 40000
Step-by-step explanation:
Given that Rs 82000 is divided into two parts.
Let the first part be Rs x which is compounded annually at the interest of 5% per annum for 2 years.
The rate of interest = 5%=0.05
The total amount after 2 years
The other part is Rs 82000-x which is compounded annually at the interest of 5% per annum for 3 years.
The total amount after 3 years
As both the amounts are equal, so from equation (i) and (ii)
x= 42000
And the other part = 82000-42000 = Rs 40000
Hence, he divides the money as
Rs 42000 at 5% per annum compound interest in 2 years and
Rs 40000 at 5% per annum compound interest in 3 years.