Question

A person invested ₹70,000 at an interest rate of 12% per annum compounded half-yearly. What would be the amount he gets after 6 months?

• A. ₹72,200
• B. ₹73,200
• C. ₹74,200
• D. ₹75,200

Answer 1

The correct option is C ₹74,200

Here , Principal (P) = ₹70000
Time (n) = 6 months
Rate of interest (R) = 12%
(compounded half yearly)

$Amount\left(A\right)=P{(1+\frac{R}{2\times 100})}^{2n}=70000{(1+\frac{12}{200})}^{2\times \frac{1}{2}}=70000{(1+\frac{6}{100})}^1=70000{(1+\frac{3}{50})}^1$
$=70000{\left(\frac{53}{50}\right)}^1=70000\times \frac{53}{50}=₹74200$

After 6 months he would get ₹74200.