Question

Vasudevan invested ₹60,000 at an interest rate of 12% per annum compounded half yearly. What amount would he would get after 6 months?

• A. ₹63,300
• B. ₹63,600
• C. ₹66,300
• D. ₹66,600

Answer 1

The correct option is B

₹63,600

Here, Principal (P) = ₹60,000
Time (n) (in years) = 6 months, which is equivalent to 1 year when compounded half yearly.
Rate of interest (R) = 6%( Here, since the sum is compounded half yearly, 12% per annum is equivalent to 6% per half year.)
$Amount\left(A\right)=P{(1+\frac{R}{100})}^n=60000{(1+\frac{6}{100})}^1=60000{(1+\frac{3}{50})}^1$
$=60000{\left(\frac{53}{50}\right)}^1=6000\times \frac{53}{50}$
$=₹63,600$
After 6 months Vasudevan would get amount ₹63,600.