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Interest in dollars is earned in nine years on eight thousand three hundred dollars deposited in an account paying seven percent interest compounded semi -annuality now first of all the amount in a compound interest is given by this formula a is equals to p in the bracket one plus r over n raised to the power n where a is the total amount earned, p is equal to principal or the amount deposited, r is the annual interest rate in decimals, n is compounding period per year, and t is the time in years.
00:50
So here in our question, the principal or the amount deposited in money is $8 ,300 .00.
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Time is.
01:02
Time is.
01:02
Is equal to nine years.
01:07
Annual rate of interest is 7%.
01:10
So first of all, we will convert it into decimal by dividing 100, which is equal to 0 .0 .07.
01:20
Now, it is given that the interest is compounded semi -annually.
01:26
So the value of n, which is basically compounding period per year.
01:32
Semi -annually means the interest is compounded two times in here...