Question

Mannu Verma deposited rupees 50000 with a bank for 1½years how much money did he get if he bank credit interest half yearly at 10% per annum​

Answer 1

Answer:

57881.25 rupees

Step-by-step explanation:

Firstly, it is not mentioned whether the bank applies simple interest or compound interest.

But, generally bank applies compound interest. So, we assume that compound interest method is to be applied.

Formula to find amount after compound interest is :-

A = P (1+i)^n       [NOTE : The symbol "^" is to denote power]

   where, A = Amount

               P = Principal

               i = Rate of interest/100

               n = No. of years

Applying the above formula,

A = 50000 (1+0.05)^3      

( n = 3 because if interest is calculated half yearly, per year it will be calculated 2 times. And we need interest after 1.5 years. So, interest is calculated for 1.5 * 2 = 3 times)

( i = 0.05 because 10% is the rate for interest calculated once per year. Since, in our case interest is calculated twice per year, we will divide 10% by 2. So, i= 10/100*2 = 0.05)

   = 50000 * 1.157625

   =57881.25 rupees