Calculate the amount when the principal is ₹ 7400.

If the interest is compounded half yearly, calculate the amount when the principal is ₹ 7400, the rate of interest is 5% and the duration is one year.

Solution:

It is given that
Principal (P) = ₹ 7400
Rate of interest (r) = 5%
Period (n) = 1 year
We know that
A = P (1 + r/(2 × 100))2×n
Substituting the values
= 7400 (1 + 5/200)2
By further calculation
= 7400 × 205/200 × 205/200
= ₹ 7774.63

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