# math

posted by Anonymous

A person invested 1100 rs in a company at compound interest compounded semi-annually.he received rs 1331 after one year.rate% is?

1. Reiny

let the semi-annual rate be i
amount after 1 year = 1100(1 + i)^2
interest = 1100(1 + i)^2 - 1100 = 1331

1100(1 + i)^2 = 2431
(1+i)^2 = 2.21
1+i = √2.21 = appr 1.4866
i = .4866

WOW, annual rate is .4866(2) = .9732 or 97% ?????

check: 1100(1.4866..)^2 = 2430.98
interest = 1330.98 or 1331 rs

Seems unreasonable high to me, do you have a typo ??

2. Anonymous

3. Reiny

poorly worded question,
so the amount is 1331 rs, then

1100(1+i)^2 = 1331
(1+i)^2 = 1.21
1+i = √1.21 = 1.1
i = .1 or 10%
so the annual rate is 20%

## Similar Questions

1. ### maths-- compound interest

find the compund interest on \$2500 for one year at 4% per annum compounded half-yearly. which of these is correct?
2. ### Finance

Your Uncle has two alternative inheritence for you. A. You receive 5000 today and 1000 per year for the next 8 years. or B. 5000 today and nothing each year for the next 7 years and at end of 8th year receive 12,000 Which is best and …
3. ### Compound Interest

A bank offers a rate of 5.3% compounded semi-annually on its four year GICs(Guaranteed Investment Certificates). What monthly and annually compounded rates should it quote in order to have the same effective interest rate at all three …
4. ### math & finance

A bank offers a rate of 5.3% compounded semi-annually on its four year GICs(Guaranteed Investment Certificates). What monthly and annually compounded rates should it quote in order to have the same effective interest rate at all three …
5. ### compounded interest

A bank offers a rate of 5.3% compounded semi-annually on its four year GICs(Guaranteed Investment Certificates). What monthly and annually compounded rates should it quote in order to have the same effective interest rate at all three …
6. ### math

Ali needs to borrow Rs 500,000 for three years. Which of the following option is more beneficial for him?
7. ### math(compund interest )

10.On 16 April 1990, \$5000 was invested at 6% compounded semi annually.Find the amount accumulated on 16 October 1993 if the rate was charged to 8% compounded quarterly beginning 16 april 1992. semi annualy compounding= (2 times in …
8. ### Math: Compounded Interest

A principal of \$200 is invested at 5% interest rate annually. Determine the future value in 3 months' time if compounded: (a) Semi-annually (b) Quarterly
9. ### Mathematics

Find the compound interest on â‚¹12800 for 1 year at 15/2% per annum compounded semi annually.
10. ### PRE-CALCULUS

Find the accumulated value of a \$5000 investment which is invested for 8 years at an interest rate of 12% compounded: (a) annually (b) semi-annually (c) quarterly (d) monthly (e) continuou

More Similar Questions