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1. How much interest will TK. 1,000 earn in one year at an annual rate of 8% if interest is compounded every 6 months ?
- A. 82.4
- B. 82.4
- C. 82.4
- D. 82.4
Answer: Option C
Explanation:
Interest of 1st 6 months = 1000*8% = 80/2 = 40
∴ Sum = 1000 + 40 = 1040
now, Interest of last 6 months = 1040*8% = 83.2/2 = 41.6
Thus, Sum of Interest in year = (40 + 41.60) = 81.60 .
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