Question

An amount of ₹5000 is invested for 1.5 years which will be compounded half yearly at a rate of 10%. Find the final amount after one and a half years?

Answer 1

The interest is calculated semi annually,
Amount after first six months,
Amount= $[P+\frac{PR}{2\times 100}]=P[1+\frac{R}{200}]$
Given P = ₹5000 and r = 10 %
$A=5000[1+\frac{10}{200}]=5000[1+\frac{1}{20}]=5000[1+\frac{1}{20}]=₹5250$
Amount after one year,
Amount $=P[1+\frac{R}{200}]$
Given P = ₹5250 and r = 10 %
$A=5250[1+\frac{10}{200}]=5250[1+\frac{1}{20}]=5250[1+\frac{1}{20}]=₹5512.5$
Amount after one and a half years,
Amount= $=P[1+\frac{R}{200}]$
Given P = ₹5512.5 and r = 10 %
$A=5512.5[1+\frac{10}{200}]=5512.5[1+\frac{1}{20}]=5512.5[1+\frac{1}{20}]=₹5788.125=₹5788.13$