Question

Amurtha deposited rupees 20,000 in a bank which compounds half yearly the annual rate of interest is 8% how much amount would she will get back after one year ?​

Answer 1

Solution!!

The concept of compound interest has to be used here. The principal, time and rate of interest is given in the question. It gets compounded half yearly. We have to find the amount.

Principal (P) = Rs 20,000

Time (T) = 1 year

Rate of interest (R) = 8%

Amount = P(1 + (R/2)/100)²ᵀ

Amount = 20,000(1 + (8/2)/100)²ˣ¹

Amount = 20,000(1 + (4/100))²

Amount = 20,000(1 + (1/25))²

Amount = 20,000(26/25)²

Amount = 20,000 × (26/25) × (26/25)

Amount = 32 × 26 × 26

Amount = Rs 21,632

Hence, the amount at the end of the year is Rs 21,632.

The questioner may ask you to find the compound interest too. Here's how you can find that.

CI = Amount - Principal

Answer 2

$21,632 \: Rs$

Step-by-step explanation:

$P = 20,000$

$R = \: \frac{ \: 16 \: }{ \: 4 \: }$

$R = 4\%$

$quarterly,$

$after \: six \: months, \: n = 2$

$A = P (1 + \dfrac{{r}}{{100}}) ^{2}$

$\: \: \: \: =20,000(1 + \dfrac{\cancel{4}}{\cancel{100_{25} }}) ^{2}$

$\: \: \: \: =20,000(1 + \dfrac{{26}}{{25}}) ^{2} </p><p>$

$\: \: \: \: =20,000 \times \dfrac{{26}}{{25}} \times\dfrac{26}{25}</p><p>$

$\: \: \: \: =21,632\</p><p>$