Question

find the total amt with interest if a sum of rs 8000 is kept in bank for 3 year with 12%p.a.compounded half yearly​

Answer 1

Given: Principal = Rs. 8,000

          Time = 3 years

          Rate of Interest = 12% p.a. (compounded half yearly)

To find: Total amount after 3 years

Solution: Given that,

Principal (P) = 8,000

Time (t) = 3 years

Rate of Interest (r) = 12% p.a. or 0.12

Number of conversion periods per year (m) = 2 (interest is compounded half-yearly)

Interest rate per conversion period (i) = $\frac{r}m}$ = 0.06

Total number of conversion periods (n) = $mt$ = 2*3 = 6

(S = Amount at the end of n periods)

∵ $S = P(1 + i)^{n}$

⇒ $8,000(1 + 0.06)^{6} = 8,000(1.06)^{6}$

⇒ $8,000 \ (1.41851) = Rs. 11,348.152 \ (approx.)$

Hence, total amount at the end of 3 years is Rs. 11,348.152 (approx.)