How much does ₹ 500 amount to in 6 months at 10% pa, if interest is compounded half yearly?
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1
Answer:
525
Step-by-step explanation:
Given :
Principal ( P ) = 500
rate of interest ( r ) = 10% = 10/100 = 0.1
years ( t ) = 6/ 12 = 0.5 year
times of componded in a year ( n ) = half yearly = 2
Amount ( A ) = ?
Solution :
A = P ( 1 + r/ n ) ^ tn
= 500 ( 1 + 0.1/2 ) ^ (0.5×2)
= 500 ( 1 + 0.05 ) ^ 1
= 500 ( 1.05) ^ 1
= 500 ( 1.05 )
A = 525
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