Question

A man lends Rs. $5,500$ at the rate of $8\%$ per annum. Find the amount if the interest is compounded half-yearly and the duration is one year.

• A. Rs. $5,888.74$
• B. Rs. $5,948.80$
• C. Rs. $5,768.69$
• D. Rs. $6,234.17$

Answer 1

Answer: (B)

Rs. $5,948.80$

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

Here, $P=5500,r=\frac{8}{100}=0.08,t=1,n=2$

$\therefore A=5500{(1+\frac{0.08}{2})}^{2\times 1}$
$=5500(1.04{)}^2$

$=5948.80$

Hence, option B is correct.