Question

Question 85(iv)

If principal = Rs. 100000,
Rate if interest = 10 % compounded half - yearly.
Amount after one year.

Answer 1

Principal (P) = ₹ 100000
Rate of interest (R) = $10\%$ compounded half - yearly

$A=P(1+\frac{R}{200}{)}^n[for6months]$
$\therefore A=P(1+\frac{R}{200}{)}^n=100000(1+\frac{10}{200}{)}^2[\therefore n=2for12months]$
$=100000\times (\frac{21}{20}{)}^2=105000$

Amount after 12 months, i.e. one year = ₹110250