Raja invested ₹ 15000 at the rate of 10 % pa for 1 yr. If the interest is compound half-yearly, then find the amount received by Raja at the end of the year.
Correct Answer: ₹ 16537.50
Explanation:
Given P = ₹ 15000 , R = 10 %
and n = 1 yr
Accounting to the formula,
Amount = P(1 + R/(2 x 100))2n
= 15000 x (1 + 5/100 )2
= 15000 x (105/100 )2
= 15000 x (21/20) x (21/20)
= ₹ 16537.50
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