P = Po*(1+r)^t
Po = 2750
If compounding annually:
r = 0.04
t = 6
P = 2750*(1.04)^6
P = 2750*1.2653190185
P = 3479.62730086
but it's money so
P = 3479.63
we want interest, so we have to subtract out the original 2750
Pinterest = 3479.63 - 2750
Pinterest = 729.63
Answer: rs. 729.63
If compounding monthly:
r = 1 + 0.04/12 = 1.003333
t = 6*12 = 72
P = 2750*(1.003333)^72
P = 2750*1.27074187878
P = 3494.54016663
but we're talking about money so
P = 3494.54
we want interest, so we have to subtract out the original 2750
Pinterest = 3494.54 - 2750
Pinterest = 744.54
Answer: rs. 744.54
If compounded continuously:
P = Po*e^(rt)
Po = 2750
r = 0.04
t = 6
P = 2750*e^(0.04*6)
P = 2750*e^(0.24)
P = 2750*1.27124915032
P = 3495.93516338
but it's money so:
P = 3495.94
we want interest so we subtract out the original 2750
Pinterest = 3495.94 - 2750
Pinterest = 745.94
Answer: rs. 745.94