#### Question

Vasudevan invested Rs 60000 at an interest rate of 12% per annum compounded half yearly. What amount would he get

(1) after 6 months?

(2) after 1 year?

#### Solution

1) P = Rs 60,000

Rate = 12% per annum = 6% per half year

*n* = 6 months = 1 half year

A = `P(1 + R/100)^n`

= Rs `[60000(1+6/100)^1] = Rs (60000 xx 106/100) = Rs 63600`

2) There are 2 half years in 1 year.

n = 2

A = Rs `[60000(1 + 6/100)^2] = Rs (60000 xx 106/100 xx 106/100) = Rs 67416`

Is there an error in this question or solution?

Solution Vasudevan Invested Rs 60000 at an Interest Rate of 12% per Annum Compounded Half Yearly. What Amount Would He Get Concept: Rate Compounded Annually Or Half Yearly (Semi Annually).