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Raju invested Rs.20,000 at an interest rate of $12 %$ per annum compounded half yearly. What amount would he get after 6 months?

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21300

21200

21100

21000

answer is B.

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Detailed Solution

$P = 20, 000$

$R = 12 %$ per annum $= 6 %$ per half year

$n =$ 6 months $= 1$ half year

$A = P {[1 + \frac{R}{100}]}^{n}$

$= 20, 000 {[1 + \frac{6}{100}]}^{1}$

$= 20, 000 \times \frac{106}{100}$

$= R s .21, 200$

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