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Magesh invested ₹ 5000 at 12% p.a for one year. If the interest is compounded half yearly, find the amount he gets at the end of the year. |
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Answer» Principal (P) = ₹ 5000 Interest compounded half yearly r = 12% p.a = 12/2 = 6% for half yearly t = 1 yr. Since compounded half yearly, the formula to be used is Amount A = P (1 + r/100)2n A = 5000 (1 + 6/100)2×1 = 5000 x (106/100)2 = ₹ 5618 |
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