Question

Rasiya deposited Rs. 20,000 in a bank where compound interested is computed half yearly. If the rate of interest is 11%, How much amount she will get after an year?

Answer 1

Capital for first year = Rs. 20,000

Rate of interest = 11 %

Interest of first half year

= 20000 × \(\frac{11}{100}\) × \(\frac{1}{2}\) = Rs. 1100

Principal of 2^nd half year

= 20000 + 1100

= 21100

Interest of the 2^nd half year

= 21100 × \(\frac{11}{100}\) × \(\frac{1}{2}\) = Rs. 1160.5

Amount she gets after one year

= 21000 + 1160.5

= Rs. 22160.5