Question

Find the amount which Yash will get on ₹ 1,200 if he gave it for 12 months at $12\%$ per annum and interest is compounded half yearly.

• A. ₹ 1,048.32
• B. ₹ 1,348.32
• C. ₹ 1,648.32
• D. ₹ 1,948.32

Answer 1

The correct option is B

₹ 1,348.32

Here, Principal (P) = ₹ 1,200

Rate of interest (R) = 6% (rate of interest of 12% per annum is equivalent to a rate of interest of 6% per 6 months, as interest is compounded half yearly)
Time (n) = 2, as 12 months has two 6 months in it.

$Amount\left(A\right)=P{(1+\frac{R}{100})}^n$

=$1200{(1+\frac{6}{100})}^2$

=$1200{(1+\frac{3}{50})}^2$

= ₹ 1,348.32