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Vasudevan invested Rs 60,000 at an interest rate of 12% per annum compounded half yearly. What amount would he get after 6 months?

5  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? 

Answers (1)
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Given,

Principal, P = Rs 60,000

Compound interest rate, R = 12% p.a

                                            = 6 % half yearly

For a period of 6 months. \therefore Time period, n = 1 half year (As there is 1 half year in 6 months.)

We know, Amount when interest is compounded annually, A = 

             A = P(1+\frac{R}{100})^n

    A =60000(1+\frac{6}{100})^1= Rs 63600 

After 6 months, Vasudevan would get an amount Rs. 63600.

 

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