Question

16. Find the amount obtained by investing Rs. 48,000 at 25% p.a. compound interest, for one year,
compounded half yearly?*
(1 Point)
Rs. 54,000
Rs. 60,000
Rs 60,750
Rs. 75,000

Answer 1

Step-by-step explanation:

16. Find the amount obtained by investing Rs. 48,000 at 25% p.a. compound interest, for one year,

compounded half yearly?*

(1 Point)

Rs. 54,000

Rs. 60,000

Rs 60,750

Rs. 75,000

is the answer

Answer 2

The amount obtained by investing Rs. 48,000 at 25% p.a. compound interest, for one year, compounded half-yearly is Rs.60,750.

Given:

Principal amount= Rs.48,000

Rate of interest= 25% p.a.

Compounding is half-yearly

To find:

The amount obtained after one year

Solution:

We can find the amount by following the steps given below-

We know that half-yearly compounding for one year means that the rate of interest becomes half and the duration becomes double.

The rate of interest=25%/2

=12.5%

Total duration= 2 half years

$Amount= Principal× {(1+rate \: of \: interest/100)}^{duration}$

$= 48000 \times {(1 + 12.5 \div 100)}^{2}$

$= 48000 {(1 + 0.125)}^{2}$

=48000(1.125)²

=48000×1.125×1.125

= Rs. 60,750

Therefore, the amount obtained after one year is Rs.60,750.