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A person deposited ₹5,000 in a bank. The deposit was left to accumulate at 6% compounded quarterly for the first five years and at 8% compounded semi annually for the next eight years. The compounded amount at the end of 13 years is (A) ₹12621.50 (B) ₹12613.10 (C) ₹13613.10 (D) none?
Most Upvoted Answer
A person deposited ₹5,000 in a bank. The deposit was left to accumulat...
Solution:
Given:
Principal amount (P) = ₹5,000;
Rate of interest (r1) = 6%;
Time period (t1) = 5 years;
Compounding period (n1) = 4 (quarterly);
Rate of interest (r2) = 8%;
Time period (t2) = 8 years;
Compounding period (n2) = 2 (semi-annually).
Calculation:
First, we calculate the total compounded amount for the first five years.
Formula for compound interest, A = P(1 + r/n)^(nt)
Where,
P = Principal amount
r = Rate of interest
n = Compounding period
t = Time period
For the first five years,
A1 = P(1 + r1/n1)^(n1t1)
= 5000(1 + 0.06/4)^(4*5)
= ₹7,039.23
Next, we calculate the compounded amount for the next eight years.
The effective rate of interest per annum for 8% half-yearly compounded is,
R = (1 + r2/n2)^(n2/12) - 1
= (1 + 0.08/2)^(2/12) - 1
= 0.039
For the next eight years,
A2 = A1(1 + R)^(t2)
= 7039.23(1 + 0.039)^(8*2)
= ₹12,613.10
Therefore, the compounded amount at the end of 13 years is ₹12,613.10.
Hence, the answer is option (B) ₹12,613.10.
Given:
Principal amount (P) = ₹5,000;
Rate of interest (r1) = 6%;
Time period (t1) = 5 years;
Compounding period (n1) = 4 (quarterly);
Rate of interest (r2) = 8%;
Time period (t2) = 8 years;
Compounding period (n2) = 2 (semi-annually).
Calculation:
First, we calculate the total compounded amount for the first five years.
Formula for compound interest, A = P(1 + r/n)^(nt)
Where,
P = Principal amount
r = Rate of interest
n = Compounding period
t = Time period
For the first five years,
A1 = P(1 + r1/n1)^(n1t1)
= 5000(1 + 0.06/4)^(4*5)
= ₹7,039.23
Next, we calculate the compounded amount for the next eight years.
The effective rate of interest per annum for 8% half-yearly compounded is,
R = (1 + r2/n2)^(n2/12) - 1
= (1 + 0.08/2)^(2/12) - 1
= 0.039
For the next eight years,
A2 = A1(1 + R)^(t2)
= 7039.23(1 + 0.039)^(8*2)
= ₹12,613.10
Therefore, the compounded amount at the end of 13 years is ₹12,613.10.
Hence, the answer is option (B) ₹12,613.10.
Community Answer
A person deposited ₹5,000 in a bank. The deposit was left to accumulat...
B
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A person deposited ₹5,000 in a bank. The deposit was left to accumulate at 6% compounded quarterly for the first five years and at 8% compounded semi annually for the next eight years. The compounded amount at the end of 13 years is (A) ₹12621.50 (B) ₹12613.10 (C) ₹13613.10 (D) none?
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A person deposited ₹5,000 in a bank. The deposit was left to accumulate at 6% compounded quarterly for the first five years and at 8% compounded semi annually for the next eight years. The compounded amount at the end of 13 years is (A) ₹12621.50 (B) ₹12613.10 (C) ₹13613.10 (D) none? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A person deposited ₹5,000 in a bank. The deposit was left to accumulate at 6% compounded quarterly for the first five years and at 8% compounded semi annually for the next eight years. The compounded amount at the end of 13 years is (A) ₹12621.50 (B) ₹12613.10 (C) ₹13613.10 (D) none? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A person deposited ₹5,000 in a bank. The deposit was left to accumulate at 6% compounded quarterly for the first five years and at 8% compounded semi annually for the next eight years. The compounded amount at the end of 13 years is (A) ₹12621.50 (B) ₹12613.10 (C) ₹13613.10 (D) none?.
A person deposited ₹5,000 in a bank. The deposit was left to accumulate at 6% compounded quarterly for the first five years and at 8% compounded semi annually for the next eight years. The compounded amount at the end of 13 years is (A) ₹12621.50 (B) ₹12613.10 (C) ₹13613.10 (D) none? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A person deposited ₹5,000 in a bank. The deposit was left to accumulate at 6% compounded quarterly for the first five years and at 8% compounded semi annually for the next eight years. The compounded amount at the end of 13 years is (A) ₹12621.50 (B) ₹12613.10 (C) ₹13613.10 (D) none? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A person deposited ₹5,000 in a bank. The deposit was left to accumulate at 6% compounded quarterly for the first five years and at 8% compounded semi annually for the next eight years. The compounded amount at the end of 13 years is (A) ₹12621.50 (B) ₹12613.10 (C) ₹13613.10 (D) none?.
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