Question

A bank pays interest at the rate of 8 % per annum compounded half yearly. Find how much should be deposited in the bank (approximately) at the beginning of each half year in order to accumulate Rs 8000 for 3 years.

• A. 994
• B. 1161
• C. 4532
• D. 2341

Answer 1

The correct option is B 1161

$A=P(1+\frac{r}{100}{)}^n$

$r=8\%/2=4\%,n=2\times 3=6$

$⟹8000=P\left[\right(1+\frac{4}{100}{)}^6$$+(1+\frac{4}{100}{)}^5......$$+(1+\frac{4}{100}{)}^1]⟹8000=P\times 21.5718⟹P=Rs.1159\approx Rs.1161$