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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​

Sagot :

Lanuelidn

Answer:

Future value, A = $10,500

Step-by-step 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;

[tex] A = P(1 + \frac{r}{100})^{t}[/tex]

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;

[tex] A = 10000(1 + \frac{5}{100})^{1}[/tex]

[tex] A = 10000(1 + 0.05)[/tex]

[tex] A = 10000(1.05)[/tex]

Future value, A = $10,500

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