Vasudevan invested Rs 60,000 at an interest rate of 12% per annum compounded half yearly. What amount would he get(i)             after 6 months?(ii)            after 1 year?

Solution: As amount invested is compounded half-yearly,
Rate of interest, $r=\frac{12}{2}=6\%$ per half-yearly
Amount invested, $P=60000$ Rs
(i) Amount after 6 months,
$A_1=60000\ast {\left(1+\frac{6}{100}\right)}^1=60000\ast \frac{53}{50}=63600$ Rs
(ii)In one year, time(t) will be $2$.
Amount after one year,
$A_2=60000\ast {\left(1+\frac{6}{100}\right)}^2=60000\ast \frac{53}{50}\ast \frac{53}{50}=67416$ Rs