For a principal Rs. $4{,}000$ at $10\%$ p.a. for $1$ year compounded half-yearly, the amount is

For a principal Rs. $4{,}000$ at $10\%$ p.a. for $1$ year compounded half-yearly, the amount is
  1. Rs. $4{,}400.00$
  2. Rs. $4{,}410.00$
  3. Rs. $4{,}420.00$
  4. Rs. $4{,}500.00$

Solution

Half-yearly rate $= 5\%$, $n = 2$ periods. $A = 4000 \times (1.05)^{2} = 4000 \times 1.1025 = 4410$.

Asked in: IMO

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