Question

Sam invested Rs. $15000$ at the rate of $10\%$ 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. $16,500$
• B. Rs. $16,525.50$
• C. Rs. $16,537.50$
• D. Rs. $18,150$

Answer 1

Answer: (C)

Rs. $16,537.50$

$P=$ Rs. $15000$; $R=10\%$ p.a $=5\%$ per half-year; $T=1$ year $=2$ half-years.
$\therefore$ Amount $=[15000\times {(1+\frac{5}{100})}^2]$
$=$ Rs. $(15000\times \frac{21}{20}\times \frac{21}{20})$
$=16,537.50$