Question

A Customer deposited $ 20,000 at 8% per annum 1 year in a branch of the State Bank of India. If the interest is calculated half-yearly, what amount will the customer get after 1 year?​

Answer 1

Step-by-step explanation:

answer- $ 21,632. You can check from the image that I shared. There, I've taken the values for each as it's given in the question and then I applied the formula.

Answer 2

Given :

Principle : $20000

Rate of interest : 8%

Time : 1 year

To find :

Amount received by the customer if amount is compounded half-yearly.

Solution :

We can find it with an appropriate formula,

$\sf \dashrightarrow Amount = Principle \bigg( 1 + \dfrac{Rate}{100} \bigg)^{Time2}$

$\sf \dashrightarrow 20000 \bigg( 1 + \dfrac{8}{100} \bigg)^{1(2)}$

$\sf \dashrightarrow 20000 \bigg( 1 + \dfrac{2}{25} \bigg)^{2}$

$\sf \dashrightarrow 20000 \bigg( \dfrac{25 + 2}{25} \bigg)^{2}$

$\sf \dashrightarrow 20000 \bigg( \dfrac{27}{25} \bigg)^{2}$

$\sf \dashrightarrow 20000 \bigg( \dfrac{27^2}{25^2} \bigg)$

$\sf \dashrightarrow 20000 \bigg( \dfrac{729}{625} \bigg)$

$\sf \dashrightarrow 800 \bigg( \dfrac{729}{25} \bigg)$

$\sf \dashrightarrow \dfrac{729 \times 800}{25} = \dfrac{583200}{25}$

$\sf \dashrightarrow \cancel \dfrac{583200}{25} = 23328$

Hence, the amount received by the customer is $23328.