Question

Vasudevan invested Rs. 60,000 at an interest rate of 12 % per annum compounded half yearly. What amount would he get

1) After 6 months ?

2) After 1 year ?

Answer 1

As we know that,

$A=P{(1+\frac{R}{100})}^n$

Whereas,

$A=$ Amount

$P=$ Principal

$R=$ Rate

$n=$ Time period

Given:-

Principal $\left(P\right)=Rs.60000$

Rate $\left(r\right)=12\%=6\%\text{per}6\text{months}$

(i) After $6$ months-

As the interest is compounded half-yearly,

$n=6\text{months}=1$

$\therefore A=60000\times {(1+\frac{6}{100})}^1$

$\Rightarrow A=60000\times (1+0.06)$

$\Rightarrow A=63600$

(ii) After $1$ year-

As the interest is compounded half-yearly,

$n=12\text{months}=2$

$\therefore A=60000\times {(1+\frac{6}{100})}^2$

$\Rightarrow A=60000\times {(1+0.06)}^2$

$\Rightarrow A=67416$

Hence the amount he get after $6$ months and $1$ year will be $Rs.63600$ and $Rs.67416$ respectively.