Question

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

• A. ₹ 5780.91
• B. ₹ 5788.13
• C. ₹ 5877.91
• D. ₹ 5000.25

Answer 1

The correct option is B

₹ 5788.13

Amount= P ${[1+\frac{R}{100}]}^n$
The interest is calculated semi annually ,
A = P ${[1+\frac{R}{2x100}]}^{nx2}$

Given r = 10 % n = 1.5 years

A = 5000 ${[1+\frac{10}{2\times 100}]}^{\frac{3}{2}\times 2}$
= 5000$(\frac{21}{20}{)}^3$
=₹ 5788.13