Question

Calculate the amount on a sum of ₹ 6000 for 1 year at an interest rate of $10\%$ per annum compounded half-yearly.

Answer 1

Given:

P = ₹ 6000

R = $10\%$ per annum, so will be $5\%$ if compounded half-yearly

n = 2 (As 1 year has 2 half year in it)

Amount will be calculated by A = [$P\times (1+\frac{R}{100}{)}^n$]

Substituting the value we get

A = $6000\times (1+\frac{5}{100}{)}^2$

A = 6000$\times$$\frac{21}{20}\times$$\frac{21}{20}$

A = ₹ 6615