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Sam invested Rs. 15000 @ 10% per annum for one year. If the interest is compounded half-yearly, then the amount received by Sam at the end of the year will be?

  • A.Rs. 16,500
  • B.Rs. 16,525.50
  • C.Rs. 16,537.50
  • D.Rs. 18,150

Answer: C

P = Rs. 15000; R = 10% p.a. = 5% per half-year; T = 1 year = 2 half-year 

Amount = [15000 * (1 + 5/100)⊃2;]

= (15000 * 21/20 * 21/20) = Rs. 16537.50

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