#Plz i need your help guys (the answer for this question)#
If you deposit sh. 100,000 in a bank which gives 12% interest rate per year. How much will you earn after 1 year and 6 months?
That would be 100000 * .12 * 1.5
Why is it calculated for interest and there is no place indicating it is an interest?
How much will you earn?
you earn interest...
How about this question?
*A richman wants to earn one million shillings in 10 years. What amount should he invest in the bank if the interest rate is 2.5% per year?
To calculate the amount earned after 1 year and 6 months with a 12% interest rate, we first need to calculate the interest earned after 1 year.
To calculate the interest earned after 1 year, we can use the formula: Interest = Principal * Rate.
In this case, the principal is Sh. 100,000 and the rate is 12%. Converting the rate to a decimal gives us 0.12.
So, the interest earned after 1 year is: Interest = 100,000 * 0.12 = Sh. 12,000.
To calculate the total amount after 1 year, we add the interest earned to the principal: Total amount = Principal + Interest = 100,000 + 12,000 = Sh. 112,000.
Now, to calculate the interest earned after 6 months, we need to calculate half of the interest earned in a year.
Half of the interest earned in a year is: Interest = 12,000 / 2 = Sh. 6,000.
To calculate the total amount after 1 year and 6 months, we add the half-year interest to the total amount after 1 year: Total amount = 112,000 + 6,000 = Sh. 118,000.
Therefore, after 1 year and 6 months, you will earn Sh. 118,000 in total.