Question

Javed makes a fixed deposit of 100000 in a bank for one year. If the rate of interest is 6% per annum, compounded half-yearly, then find the maturity value

• A. 106090
• B. 105000
• C. 104060
• D. 104000

Answer 1

The correct option is A 106090

When the interest is compounded half –yearly,
$A=P{(1+\frac{r}{2\times 100})}^{n\times 2}$
$=>A=100000{(1+\frac{6}{2\times 100})}^{1\times 2}$
$=>A=100000\times 1.03\times 1.03=Rs1,06,090$