Question

A sum of ₹ 12000 is invested for 1.5 years which will be compounded half yearly at a rate of 10%. Find the amount obtained.

• A. 13891.5
• B. Rs 13891.5
• C. Rs 13591
• D. Rs 14891.5

Answer 1

The correct option is B Rs 13891.5

Time is calculated half yearly.

There are 3 half years in 1.5 years.

So, $n=3$

Half-yearly compound interest is $\frac{R}{2}$

$A=P\times {[1+\frac{R}{2\times 100}]}^n$
$A=12000\times {[1+\frac{10}{2\times 100}]}^3$
$A=12000\times {[1+\frac{1}{20}]}^3$
$A=12000\times {\left[\frac{21}{20}\right]}^3$
A $=₹13891.5$