Akshat invested ₹90,625 at 8% p.a. for 1 year at compound interest, compounded half yearly. The amount received by him is:

Question

Question

This question was previously asked in

RRB NTPC Graduate Level CBT-I Official Paper (Held On: 05 Jun, 2025 Shift 3)

Answer 1

Given:

Principal (P) = ₹90,625

Rate of interest (R) = 8% p.a.

Time (T) = 1 year

Compound Interest is compounded half-yearly.

Formula Used:

Amount (A) = P × (1 + R / (2 × 100))^{2 × T}

Calculation:

Here, R is divided by 2 because interest is compounded half-yearly, and the number of times interest is compounded in a year (n) is 2.

Amount (A) = 90,625 × (1 + 8 / (2 × 100))^{2 × 1}

⇒ Amount (A) = 90,625 × (1 + 8 / 200)²

⇒ Amount (A) = 90,625 × (1 + 0.04)²

⇒ Amount (A) = 90,625 × (1.04)²

⇒ Amount (A) = 90,625 × 1.0816

⇒ Amount (A) = ₹98,020

The amount received by Akshat is ₹98,020.

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