Question

Kanta deposited rupees 40000 for one year in a fixed deposit with a bank if Bank pays 8% per annum and the interest is calculated half yearly what amount she get after one year?​

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 Sheetal will get after 1 year is Rs.21,218