If the principal is Rs. 100,000 and the rate of interest is 10% compounded half-yearly, what is the amount after one year?
Q1. If the principal is Rs. 100,000 and the rate of interest is 10% compounded half-yearly, what is the amount after one year?
Answer: Rs. 1,10,250
Explanation: 10% p.a. compounded half-yearly = 5% per half year. Amount = 100000 × (1.05)² = 100000 × 1.1025 = Rs. 1,10,250.