12, Which will earn more interest and how much?i. Rs 6000 lent at 12%

1.	12, Which will earn more interest and how much?i. Rs 6000 lent at 12% pa. compounded annually for 1 1/2 years.ii.Rs 6000 lent at 12% pa. compounded half yearly for 1 1/2 years
Answer» 1) A=6000(1+0.12)^1.5=6000(1.12)^1.5=7111.78so interest=1111.782) A=6000(1+0.12/2)^3=6000(1.06)^3=7146.1so interest=1146.1 so 2nd get more interest

12, Which will earn more interest and how much?i. Rs 6000 lent at 12% pa. compounded annually for 1 1/2 years.ii.Rs 6000 lent at 12% pa. compounded half yearly for 1 1/2 years

Answer»

1) A=6000(1+0.12)^1.5=6000(1.12)^1.5=7111.78so interest=1111.782) A=6000(1+0.12/2)^3=6000(1.06)^3=7146.1so interest=1146.1

so 2nd get more interest