Question

Which of the following is the interest on $6000 at 6% compounded semiannually for eight years?

Answer 1

9628.24

Explanation:

=6000*1+(0.06/2)

=6000 * 1.03^16

=6000*1.604706

=9628.24

Answer 2

The interest compounded semiannually for eight years on the amount $6000 is $9628

Solution:

From question given that amount = $6000

Interest rate = 6%

Number of years = 8 years

We have to find the interest on $6000 at 6% compounded semiannually for eight years.

When interest is compounded Half-yearly / semiannually, the compound interest is given as:

`\text {COMPOUND INTEREST}=P\left\{1+((R)/(2))/(100)\right\}^(2N)`

Where, P = principal amount

R = rate per annum

N = Number of years

Compound interest (C.I)
`=6000\left\{1+((6)/(2))/(100)\right\}^(16)`

`=6000\left\{1+(3)/(100)\right\}^(16)`

`=6000\{1.03\}^(16)`

`= 6000 * 1.6047`

= 9628.23

Hence the interest compounded semiannually for eight years is $9628