Questions & Answers

Question

Answers

A. $\$ 10100.25$

B. $\$ 10200.25$

C. $\$ 11025$

D. $\$ 10100$

Answer
Verified

Now we are going to find the amount for $1$ year by using the formula $A = P{\left( {1 + \dfrac{R}{{100}}} \right)^T}$ where $P$ is principal amount, $R$ is rate of annual interest and $T$ is time in half years.

Now we are going to substitute the values of $P$, $R$ and $T$ in the formula of amount for $1$ year.

Therefore, $A = 10000{\left( {1 + \dfrac{5}{{100}}} \right)^2}$

$ \Rightarrow $ $A = 10000{\left( {\dfrac{{100 + 5}}{{100}}} \right)^2}$

$ \Rightarrow $$A = 10000{\left( {\dfrac{{105}}{{100}}} \right)^2} = 10000\left( {\dfrac{{105 \times 105}}{{100 \times 100}}} \right)$

$ \Rightarrow $ $A = 105 \times 105 = \$ 11025$

Therefore, the balance after $1$ year will be $\$ 11025$.

Therefore, option C is correct.

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