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STatiana [176]
2 years ago
5

9) Mr.Rao bought 1-year, Rs.10000 certificate of deposit that paid interest at an annual rate of 8%

Mathematics
1 answer:
pshichka [43]2 years ago
6 0

Answer:

Rs 816

Step-by-step explanation:

For the above question, the formula to use is given as:

Amount = P( 1 + r/n)^nt

Given, P = 10,000

r = 8% = 0.08

n = 2 = semi annually

t = 1 year

Amount = 10,000( 1 + 0.08/2)^2×1

Amount = 10,000( 1 + 0.04)²

= 10,000(1.04)²

= 10,000(1.0816)

= 10,816

Hence, Interest is calculated as

Amount - Principal

interest = Rs. 10,816 − Rs. 10000

= Rs. 816

Hence, interest paid at the time of maturity is Rs. 816.

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