Multiple choice

Vinod makes a deposit of Rs 100,000 in Syndicate Bank for a period of 2 years. If the rate of interest be 12% per annum compounded half-yearly, what amount will he get after 2 years?

  1. 122,247.89

  2. 125,436.79

  3. 126,247.69

  4. 122436.89
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Principal = 100,000. Rate = 12% p.a. compounded half-yearly = 6% per half-year. Time = 2 years = 4 half-years. Amount = 100,000 * (1.06)^4 = 100,000 * 1.26247696 = 126,247.696.

AI explanation

Using the compound interest formula Amount equals Principal multiplied by (1 plus Rate divided by 400) raised to the power of four times the number of years for half-yearly compounding, we substitute the values. The rate per half-year is six percent, making the calculation 100000 multiplied by 1.06 raised to the power of four. Evaluating 1.06 raised to the power of four and multiplying by 100000 results in an amount of 126247.69.

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