Question

Sam invested $Rs.15000$ at $10\%$ per annum for one year. If the interest is compounded half-yearly, then the amount received by Sam at the end of the year will be.

• A. $Rs.16500$
• B. $Rs.16525.50$
• C. $Rs.16537.50$
• D. $Rs.18150$

Answer 1

Answer: (C)

$Rs.16537.50$

$P=Rs.15000,R=10\%p.a=5\%perhalfyear,T=1year=2half-year$.

$A=P{(1+\frac{R}{100})}^T$

$A=15000\times {(1+\frac{5}{100})}^2$

$A=15000\times {(1+\frac{1}{20})}^2$

$A=15000\times \frac{21}{20}\times \frac{21}{20}$

$\therefore$ $A=Rs.16537.50$