Question

John deposited 2500 rupees on the first of January in a bank where interest is compounded half-yearly at 6% annual rate. On the first of July, he deposits 2500 rupees more. How much would he have in his account at the end of the year? ​

Answer 1

Answer:

2500. The rate of interest is given as 6% per annum. As we are given that, rate of interest is compounded half-yearly, so our interest for six months will reduce to 62%=3%. Therefore r = 3%