Question

Vasudevan invested $Rs.60,000$ at an interest rate of $12\%$ per annum compounded half yearly. What amount would he get
(i) after $6$ months?
(ii) after $1$ year?

Answer 1

For compounded half - year, we use

$A=P{\left(1+\frac{r}{2}\right)}^{2n},$ where $n=numberofyear$

$\begin{array}{c}\left(i\right)A=60000{\left(1+\frac{0.12}{2}\right)}^{2\times \frac{1}{2}}\\ =60000\left(1+0.06\right)=63,600\\ \left(ii\right)A=60000{\left(1+\frac{0.12}{2}\right)}^{2\times 1}\\ =60000{\left(1+0.06\right)}^2=67,416\end{array}$

Hence, this is the answer.