Asha deposits ₹12,500 in a private bank at the rate of 15%, compounded half-yearly. Find the amount Asha earns (in ₹) in $$1\frac{1}{2}$$ years(rounded off to two decimal places).

Correct option is C

Given:

Rate of interest(r) = 15%

Time(t) =$$1\frac{1}{2}=\frac{3}{2}\ years$$​​

Principle = ₹12,500

Formula Used:

Compounded Amount =$$Principle \times \left(1+ \frac{r}{100}\right)^{t}$$​​

Solution:

If interest is calculated half yearly then

Rate of interest will be =$$\frac{15}{2} =7.5\%$$​​

Time will be t = $$\frac{3}{2}\times2 = 3$$​​

Amount = $$12500 \times \left(1+ \frac{7.5}{100}\right)^{3}$$​​

​$$= 12500\left(\frac{1075}{1000}\right)^{3}$$​

​$$= ₹15,528.71$$​​