1.

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.

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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