Question

Sheela deposited Rs 20000 in a bank, where the interest is credited half-yearly. If the rate of interest paid by the bank is $6\%$ per annum, what amount will she get after 1 year ?

Answer 1

$\text{Amount deposit in the bank = Rs. 20000}\text{Rate of interest (R)=}6\%p.a.or3\%\text{half-yearly}\text{Period (n) = 1 year or 2 half years}\therefore \text{Amount received after 1 year}=P{(1+\frac{R}{100})}^n=Rs.20000{(1+\frac{3}{100})}^2=20000{\left(\frac{103}{100}\right)}^2=Rs.20000\times \frac{103}{100}\times \frac{103}{100}=Rs.21218$