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Q.

The amount of Rs.256 in one year at $12 \frac{1}{2} %$ p. a compounded half yearly is

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a

Rs.289

b

Rs.298

c

Rs.829

d

Rs.324

answer is A.

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Detailed Solution

$A = P {[1 + \frac{R}{\frac{2}{100}}]}^{T}$

$256 {[1 + \frac{25}{4 \times 100}]}^{2}$

$256 \times \frac{17}{16} \times \frac{17}{16}$

$= R s . 289$

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