Question

Vasudevan invested 8000 at an interest rate
of 12% per annum compounded semi-
annually. What would he get :
(i) after 9 months ?
(ii) after 1 year?​

Answer 1

(i) Rs. 8730.69

(ii) Rs. 8988.8

Step-by-step explanation:

The interest rate is 12% per annum.

So, the semi-annual interest is 6%.

Now, if the investment is Rs. 8000 and we have to calculate the sum after 9 months and after 1 year.

(i) For 9 months' duration the money will be compounded 1.5 times on the semi-annual interest rate.

So, the sum will be $8000(1 + \frac{6}{100})^{1.5} = 8730.69$ Rs.

(ii) For 1 year duration, the principal will be compounded twice.

So, the sum will be $8000(1 + \frac{6}{100})^{2} = 8988.8$ Rs. (Answer)