Answer:
Let's solve each part of Bipin's situation step by step:
(a) Which option helps Bipin get more interest?
1. Annual Compound Interest:
A = P (1 + r ÷ 100 ) t
2. Semi-Annual Compound Interest:
A = P (1+ r ÷ 200) 2t
3. Quarterly Compound Interest:
A = P( 1+ r ÷ 400) 4t
where:
- P is the principal amount,
- r is the rate of interest,
- t is the time in years.
Since Bipin wants to deposit Rs 2,00,000 for 2 years with a 10% per annum compound interest, we can calculate the amounts for each option and compare.
(b) Compound Amount with Semi-Annual Compounding:
A = P (1+ r÷ 200 ) 2t
Substitute P = 2,00,000, r = 10, t = 2 into the formula.
(c) Amount at the end with Quarterly Compound Interest:
At the end of 1 year, Bipin withdraws the total amount received according to the semi-annual compound interest and deposits it for the rest of the period to get quarterly compound interest.
Calculate the amount at the end of 1 year using semi-annual compounding.
Use this amount as the principal (P) for the remaining 1 year with quarterly compounding.
A = P (1+ r ÷ 400) 4t
Substitute P from the previous calculation, r = 10, t = 1 into the formula.
If you provide the values for P, r, and t, I can help with the numerical calculations.
Step-by-step explanation:
