Multiple choice

Vasudevan invested Rs. 60000 at an interest rate of 12% per annum compounded half yearly. What amount would he get after 1 year?

  1. Rs. 67416

  2. Rs. 78416

  3. Rs. 67786

  4. Rs. 45416
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Principal = 60000, Rate = 12% p.a. compounded half-yearly (6% per 6 months), Time = 1 year (2 periods). Amount = 60000 * (1 + 6/100)^2 = 60000 * (1.06)^2 = 60000 * 1.1236 = 67416.

AI explanation

Using the compound interest formula Amount = Principal * (1 + (R/200))^(2T) for half-yearly compounding, we substitute the values to get Amount = 60000 * (1 + (12/200))^2. This simplifies to 60000 * 1.06 * 1.06 = 60000 * 1.1236. Multiplying these gives the final amount of Rs. 67416.

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