Question

QUESTION 5: A man invests Rs
5,000 for 3 years at a certain rate
of interest, compounded semi-
annually. At the end of 6 months it
amounts to Rs 5,600. The rate of
interest will be
O 24%
O 12%
0 112%
O none of these
Chose the correct one​

Answer 1

ANSWER :-

We know that  

At the end of one year  

Interest = P r t/100  

Substituting the values  

= (5000×r×1)/100

= 50r

Here

Amount = 5000 + 5r

We can write it as  

5000+50r=5600

By further calculation  

50r=5600−5000=600

So we get  

r=600/50=12

Hence  12% is the Answer