Question

Vasudevan invested rupees 60000 at an interest rate of 12% per annum compounded half yearly what amount would he get after 1 year?​

Answer 1

Answer:

Given that, Vasudevan invested ₹ 60,000

For Compound Interest (C.I.)

A = P[1 + (r/100)]n

P = ₹ 60,000

n = 6 months and 1 year

R = 12% p.a. compounded half-yearly

where , A = Amount, P = Principal, n = Time period and R = Rate percent

(i) For easy calculation of compound interest, we will put Interest Rate as 6% half-yearly and n = 1.

Compound Interest to be paid for 6 months

A = P[1 + (r/100)]n

A = 60000[1 + (6/100)]1

A = 60000[(100/100) + (6/100)]

A = 60000 × (106/100)

A = 60000 × 1.06

A = ₹ 63600

(ii) Compound Interest to be paid for 12 months (1 year) compounded half yearly.

So, assume n = 2, r = 6%

A = P[1 + (r/100)]n

A = 60000[1 + (6/100)]2

A = 60000[(100/100) + (6/100)]2

A = 60000 × (106/100) × (106/100)

A = 60000 × (11236/10000)

A = 60000 × 1.1236

A = ₹ 67416