Question

A person deposited 100000 in a bank for three years. The Bank paid interest at 8% per annum compounded half yearly during the first year and at 12% per annum compounded quarterly during last 2 years.What is his balance after 3 years

Answer 1

P = Po(1+r)^n.

First Year:
Po = $100,000.
r = 0.08/yr. * 0.5yrs. = 0.04.
n = 2comp./yr. * 1yr. = 2 compounding periods.
P = 100000(1.04)^2 = $108,160.

Last Two Years:
Po = 108,160.
r = 0.12/yr. * 0.25yrs. = 0.03/qtr.
n = 4comp./yr. * 2yrs. = 8 compounding periods. P = ?.

Answer 2

Yearly interest on a 100,000.00 dollars

Answer 3

So what's the balance