Question

PUDUL U
10. Himachal Pradesh State Electricity Board issued in
July 1988, 20 year bonds worth * 6.25 crore. The
issue price of each bond is 100 and it carries an
annual interest of 11.5%, compounded half-yearly.
Jasbir invested 5000 in these bonds. Find the
amount that he gets on maturity of the bonds in
2008.​

Answer 1

Answer:

₹46793.45

Step-by-step explanation:

hint:(1.0575)^40=9.35869

p= ₹5000

r =11.5%pa =11.5/2% = 5.75% half yearly

compounded half yearly

time=2008-1988=20years=40half years

amount of bonds on maturity of

a= p(1+r/100)^n

=p(1+r×0.01)^n

a=₹5000(1+5.75×0.01)^40

=₹5000(1.0575)^40

=₹5000×9.35869

=₹46793.45000

=₹46793.45

hence the amount he gets on maturity

=₹46793.45