Question

When an investor evaluates a 6-month compound interest of 1.500.000 TL with an interest rate of 15 percent, how much will it be with interest after 4 years?

 

Answer 1

Amount$=1,500,000$

semi-annual rate $=15/2=7.5\%$

number of periods $=4\times 2=8$

values in 4 years = $=1,500,000\times (1+0.075)^{8}=2675216.74$

amount of interest $=2675216-1500000=1,175,216.74$