Question

Gauri deposited rupees 2000 in a bank, where the interest is credit half yearly​

Answer 1

Answer:

The formula for compound interest, including principal sum, is:

A=P(1+ nr ) nt

Where:

A= the future value of the investment/loan, including interest

P= the principal investment amount (the initial deposit or loan amount)

r= the annual interest rate (decimal)

n= the number of times that interest is compounded per unit t

t= the time the money is invested or borrowed for

In our given problem,

P= Rs. 20000, r=6%=0.06, n=2, t=1 year

∴, the amount received after the term of 1 year will be given by,

A=20000(1+ 20.06) 2×1

⇒A=20000(1+0.03) 2

⇒A=20000(1.03) 2

⇒A=Rs.21218

∴, the amount gauri will get after 1 year is Rs.21,218