73.8k views
2 votes
If Rs 1000 is invested at 12% interest and interest is compounded half what will be the total amount at the end of the year

1 Answer

6 votes
The total amount at the end of the year can be calculated using the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:
A = Total amount
P = Principal amount (Rs 1000)
r = Annual interest rate (12% or 0.12)
n = Number of times interest is compounded per year (2, since it is compounded half-yearly)
t = Number of years (1 year)

Plugging in the values:

A = 1000(1 + 0.12/2)^(2*1)
A = 1000(1 + 0.06)^2
A = 1000(1.06)^2
A = 1000(1.1236)
A = 1123.6

Therefore, the total amount at the end of the year will be Rs 1123.6.
User Tysean
by
8.2k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.