Question

Find the future value of an ordinary amount of Rs 4000 each six months for 10 years at 8% per annum , compounded semi-annually.

• A. $123877$
• B. $175640$
• C. $213457$
• D. $324156$

Answer 1

The correct option is A $123877$

$P=Rs.4000$

Amount payable in half yearly so $,r=8\%/2=4\%,t=10\times 2=20$

$A={\sum }_{n=1}^{20}P{(1+\frac{r}{100})}^n={\sum }_{n=1}^{20}4000{(1+\frac{4}{100})}^n=4000\times 30.969=Rs.123877$