Question

# If a sum of ₹ 100 is invested at 20% per annum compounded half-yearly, then find the amount after 1 year 6 months.133.1

Solution

## The correct option is A 133.1Given: Principal =₹ 100Interest rate per annum =20% p.aInterest rate half yearly =20%2=10% Since the interest is compounded half yearly, there will be three conversion periods in one year and six months. ⇒n=1.5×2=3. By using formula for compound interest, we get, Amount=P[(1+r100)n] Amount=100[(1+10100)3] Amount=₹ 133.1

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