Question

Find the amount to be paid at the end of 1 year on Rs.12,500 at 8% per annum compounded half yearly.

Answer 1

Answer:

the amount to be paid at end of 1 yr is ₹13000

Answer 2

Given:

Rs.12,500 at 8% per annum compounded half-yearly

To Find:

Find the amount to be paid at the end of 1 year

Solution:

It is given that an amount of Rs12500 is being compounded half-yearly for 1 year, to find the amount we will need to use the formula for compound interest that is,

                                      $A=P(1+\frac{r}{n})^{nt}$

where,  

          A= amount at the end of the  time period

          P= principal amount

          r= rate of interest

          n= number of compounding

          t= time period

Now put all the given values in the above-mentioned formula, which goes as

$A=12500(1+\frac{0.08}{2})^2\\=12500*1.0816\\=13520$

Hence, the amount to be paid at the end of 1 year on Rs.12,500 at 8% per annum compounded half-yearly is Rs13520.