Question

How much should a sum of Rs. $16000$ approximately amount to in $2$ years at 10% p.a. compounded half-yearly?

• A. Rs. $17423$
• B. Rs. $18973$
• C. Rs. $19448$
• D. Rs. $19880$

Answer 1

The correct option is C Rs. $19448$

Given, $P=$ Rs. $16000,r=10\%$ p.a.

For half yearly:

$r=5\%$ per half year, $n=4$ half years

Amount $=P{(1+\frac{r}{100})}^n$

$\therefore$ Amount $=16000{(1+\frac{5}{100})}^4$

$=16000\times {\left(\frac{21}{20}\right)}^4$

$=\frac{16000\times 194481}{160000}$

$=19448.10=$ Rs. $19448$ (approx)