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Q.

A man invests Rs. 50,000 at 10% p.a. compounded half-yearly for 2 years. What will be the amount at the end of 2 years? ( report to nearest to 10000s)

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a

39000

b

61000

c

50000

d

56000

answer is D.

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Detailed Solution

Principal (P) = Rs. 50,000
Rate of interest (r) = 10% p.a.
Time period (t) = 2 years
Number of compounding periods (n) = 4 (compounded half-yearly)

The amount can be calculated using the following formula:

A = P * (1 + r/n)^(n*t)

A = 50,000 * (1 + 0.1/4)^(4*2)
= Rs. 61,047.84

Therefore, the amount at the end of 2 years will be Rs. 61,047.84.

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