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Question

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


Solution

The correct option is A 133.1
Given: 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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