Question

Biswa decided to save money for a trip. He was checking some investment options for saving, but his friend Kalia suggested to check if he is interested in compound interest. Biswa found a bank that offers 6% compound interest calculated on a half-yearly basis. To know in detail, Biswa planned to deposit Rs. 20000 each on 1st of January and 1st of July of that same year. But Biswa is not that great at Math! Can you help him know, what amount he would have gained through interest by the end of the year?​

Answer 1

Answer:

1586

Step-by-step explanation:

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Answer 2

Given :-

• Principal = Rs.20000 .
• Rate = 6% compounded half yearly .
• Time = 1 year .

To find :-

• CI = ?

Solution :-

we know that, when rate is compounded half yearly,

• Time = 2 times = 1 * 2 = 2 years.
• Rate = Half = 6 / 2 = 3% per annum .
• Amount = P[1 + (R/100)]^time .

putting values we get,

→ A = 20000[1 + (3/100)]²

→ A = 20000 * (103/100)²

→ A = (20000 * 103 * 103) / 100 * 100

→ A = Rs.21,218

therefore,

→ CI = A - P

→ CI = 21218 - 20000

→ CI = Rs.1218 (Ans.)

Hence, Biswas gained Rs.1218 by the end of the year.

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