Question

Vasudevan invested ₹60,000 at an interest rate of 12% per annum compounded half yearly. What amount would he get
(A) After 6 months
(B) After 1 year

Answer 1

(A) Principal (P) = ₹60,000
Rate (R) = 12% per annum = 6% per half year
Number of years, n = 6 months = 1 half year
Amount, $A=P{(1+\frac{R}{100})}^n$
$=[60,000{(1+\frac{6}{100})}^1]$
$=[60,000{(1+\frac{3}{50})}^1]$
$=[60,000{\left(\frac{53}{50}\right)}^1]$
$=₹63,600$

(B) Principal (P) = ₹60,000
Rate (R) = 12% per annum = 6% per half year
Number of years, n = 6 months = 1 half year = 2
There are two half years in 1 year.
Amount (A) $=P{(1+\frac{R}{100})}^n$
$=[60,000{(1+\frac{6}{100})}^2]=[60,000{(1+\frac{3}{50})}^2]=[60,000{\left(\frac{53}{50}\right)}^2]$
$=₹67,416$