Q. 93.9( 28 Votes )

Sudershan deposited Rs. 32000 in a bank, where the interest is credited quarterly. If the rate of interest be 5% per annum, what amount will he receive after 6 months?

Answer :

Present value, P = Rs.32000


Interest rate, R = 5% per annum


Time, n = 6 months = (1/2) years


Compounded quarterly,


Amount (A) = P [1 + (R/4)/100]4n [Where, P = Present value


R = Annual interest rate


n = Time in years]


A = 362000 [1 + (5/4)/100]2 [4n = 4 × 1/2]


A = 32000 [1 + 1/80]2


A = 32000 [81/80]2


A = 32000 × 81/80 × 81/80


A = 400 × 81 × 81/80


A = 5 × 81 × 81


A = 32805


Amount = Rs.32805


Sudershan will receive amount of Rs.32805 after 6 months.


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