Question

Question 5 (ii)
Vasudevan invested Rs 60,000 at an interest rate of 12% per annum compounded half yearly. What amount would he get:
(ii) After 1 year?

Answer 1

(ii) Here, Principal (P) = Rs 60,000.
Time(n) = 1 year = 2 year ( Compound half yearly)
Rare of interest (R) = 12% = 6% ( Compound half yearly)
Amount (A) = $P{(1+\frac{R}{100})}^n=60000{(1+\frac{6}{100})}^2=60000{(1+\frac{3}{50})}^2$
$=60000{\left(\frac{53}{50}\right)}^2=6000\times \frac{53}{50}$
=RS. 67,416
After 1 year Vasudevan would get amount Rs 67,416.