If the compound interest is compounded half-yearly, then investing a certain sum at the rate of 10% per annum, the maturity amount after one year is ₹ 13,230. What is the sum?
1. 12,500
2. 12,000
3. 12,750
4. 12,250
1. 12,500
2. 12,000
3. 12,750
4. 12,250
Correct Answer – Option 2 : 12,000
Given:
Rate = 10% per annum
Maturity Amount after one year = ₹ 13,230
Interest is compounded half yearly
Concept Used:
For half yearly compound interest just double the time and half the rate then the question is general compound interest question.
Formula Used:
Amount = Principal[1 + Rate/100]Time
Calculation:
Rate = 10%/2 = 5%
Time = 1 × 2 = 2 year
Amount = Principal[1 + Rate/100]Time
⇒ ₹ 13,230 = Principal[1 + 5/100]2
⇒ ₹ 13,230 = Principal[1 +1/20]2
⇒ ₹ 13,230 = Principal[21/20]2
⇒ ₹ 13,230 = (441/400)Principal
⇒ Principal = ₹ (13230 × 400)/441
⇒ Principal = ₹ 5292000/441
⇒ Principal = ₹ 12,000
∴ The sum is ₹ 12,000