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

As amount invested is compounded half-yearly,
Rate of interest, `r = 12/2 = 6%` per half-yearly
Amount invested, `P = 60000` Rs
(i) Amount after 6 months,
`A_1 = 60000**(1+6/100)^1 = 60000**53/50 = 63600 ` Rs
(ii)In one year, time(t) will be `2`.
Amount after one year,
`A_2 = 60000**(1+6/100)^2 = 60000**53/50**53/50 = 67416` Rs