Question

Q. Pradeep makes a deposit of 50,000 in a savings scheme for a period of $1\frac{1}{2}$ years. If the rate of interest is 12% per annum compounded half-yearly, What is the interest gained over upon maturity.

• A. 90001
• B. 9250.35
• C. 9550.8
• D. 10005.36
• E. None of these

Answer 1

The correct option is C 9550.8

Time period =$1\frac{1}{2}$years = 3 cycles of 6 months each
Total amount $=5000(1+\frac{6}{100}{)}^3=50000\times \frac{53}{50}\times \frac{53}{50}\times \frac{53}{50}=59550.8$
Interest = 59550.8 -50000 = 9550.8