Question

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Answer 1

Answer:Amount = Rs.13,891.5

C.I = Rs. 1891.5

Step-by-step explanation:

Compounded half yearly:

Time = 3 years; Rate = 5% (for half yearly, double the time, half the rate]

P = 12,000 Rs.

A = P[1+ R/100]^n = 12,000[ 1 + 5/100]^3

   = 12,000 * 105*105*105/100*100*100

=13891.5 Rs.

Compound Interest = A - P = 13891.5 - 12,000 = 1891.5 Rs.

[You can also use: A = P[ 1 + (R/2)/100]^2n for half year compounding]

ALTERNATE:

For 3 years [short cut: Time=3yrs, Rate=5% for half yearly]

 1                          3                            3                            1

12,000 --5%      600  -- 5%              30 --   5%                 1.5

C.I = 3*600 + 3*30 + 1*1.5 = 1800+90+1.5 = 1891.5 Rs.

A = P+C.I = 13891.5 Rs.