Question
A Bank came up with an interesting investment plan under
which it would offer 6% interest compounded half-yearly. Mr. 'X' deposited ₹ 80000 once at the beginning of the year and once more in the middle of the year under this scheme. How much interest would he have earned at the end of the year?Solution
Amount at the end of the year = 80000 x {1 + (6/200)}² + 50000 x {1 + (6/200)} = 80000 x 103/100 x [(103/100) + 1] = 80000 x 103/100 x 203/100 = ₹ 167272 ∴ Interest earned = 167272 - 160000 = ₹ 7272
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