Inflation 42111

A client deposits 100,000 euros in XYZ bank for a term deposit with an interest rate of 4% pa (per annum). After six months, you went to get the money. How much did he have in his account with the described half-yearly interest?

PS When you deposit money in a bank, you don't earn money on it. .. inflation and fees are usually higher than interest. ..

Correct answer:

x =  102000 Eur

Step-by-step explanation:

$$\begin{gathered} a=100000\text{Eur} \\ p=4\%=\frac{4}{100}=\frac{1}{25}=0.04 \\ x=a+a\cdot p/2=100000+100000\cdot 0.04/2=102000\text{Eur} \end{gathered}$$

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