(a) ₹ 1209
Explanation:
Present value= ₹ 40000
Interest rate= 6% per annum
Time=6 months
To find the amount we have the formula,
Amount (A) = P (1+(R/100))4n
Where P is present value, r is rate of interest, n is time in years.
Now substituting the values in above formula we get,
∴ A = 40000 (1 + (6/4)/100)2
⇒ A = 40000 (1+3/200)2
⇒ A = 40000 (203/200)2
⇒ A = 40000 (203/200)2
⇒ A = 203 × 203
⇒ A = ₹ 41209
∴ Compound interest = A – P
= 41209 – 40000 = ₹ 1209