Question

If you have a bank account whose principal is Rs. $5000$, and your bank compounds the interest twice a year at an interest rate of $12\%,$ how much money do you have in your account at the year's end?

• A. $4272$
• B. $5272$
• C. $6272$
• D. $7272$

Answer 1

The correct option is C $6272$

Given: $P=5000,r=12\%,n=2$ years
We know the formula $A=P\left[{(1+\frac{r}{100})}^n\right]$
Substituting the given values int he formula, we get

$A=5000\left[{(1+\frac{12}{100})}^2\right]$
$A=$ Rs. $6272$