Question

1.Ramu deposited Rs. 10,000 in a bank where interest is compounded

half yearly. If the rate of interest is 10% annually. How much amount he
will get after a year?
3​

Answer 1

Future value, A = $10,500

Explanation:

Given the following data;

Principal = Rs. 10,000

Interest rate compounded half yearly = 10% = 10/2 = 5%

Time = 1 year

To find the future value, we would use the compound interest formula;

`A = P(1 + (r)/(100))^(t)`

Where;

• A is the future value.
• P is the principal or starting amount.
• r is annual interest rate.
• n is the number of times the interest is compounded in a year.
• t is the number of years for the compound interest.

Substituting into the equation, we have;

`A = 10000(1 + (5)/(100))^(1)`

`A = 10000(1 + 0.05)`

`A = 10000(1.05)`

Future value, A = $10,500