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

i)

$A=p{(1+\frac{r}{200})}^{2n}$ , when compounded half-yearly

$n=6$ months = $\frac{1}{2}$ year

$=60000{(1+\frac{12}{200})}^{(2\times \frac{1}{2})}$

$=60000\left(1.06\right)$

$=Rs.63600$

Amount after $6$ months $=Rs.63,600$

ii)

$A=p{(1+\frac{r}{200})}^{2n}$

$n=1$ year

$=60000{(1+\frac{12}{200})}^{(2\times 1)}$

$=60000\left(1.1236\right)$

$=Rs.67416$

Amount after $1$ year $=Rs.67,416$