Question
Find the amount (integral value only) if a sum of
₹6,500 is being borrowed at 10% interest per annum for 2 years if interest is compounded half-yearly.Solution
ATQ,From the given data, P = ₹6,500 r = 10% = 0.1 n = 2 (compounded half-yearly) Given the rate of interest per annum = 0.1 Interest rate per half year = 0.1/2 = 0.05 Using the formula, A = P(1 + i)(nt) = 6500(1 + 0.05)⁽²⁽²⁾⁾ = 6500(1.05)⁴ = ₹7166.25 Therefore, The total amount after 2 years is ₹7166.25
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