Mathematics for FinancePYQ Dec 23Question 1253 of 512
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Mr. X makes a deposit of 50,000\displaystyle 50,000 in the bank for a period 2.5\displaystyle 2.5 years. If the rate of interest is 12%\displaystyle 12\% per annum compounded half yearly, then the maturity value of the money deposited by Mr. X is: (where (1.06)5=1.3382\displaystyle (1.06)^5 = 1.3382)

Options

A66,910\displaystyle 66,910
B66,123\displaystyle 66,123
C67,925\displaystyle 67,925
D65,550\displaystyle 65,550
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Correct Answer

✅ Option a — 66,910\displaystyle 66,910

All Options:

  • A66,910\displaystyle 66,910
  • B66,123\displaystyle 66,123
  • C67,925\displaystyle 67,925
  • D65,550\displaystyle 65,550

Detailed Solution & Explanation

**Derivation of Maturity Value** Given: - Principal (P\displaystyle P) = Rs. 50,000\displaystyle \text{Rs. }50,000 - Time (t\displaystyle t) = 2.5\displaystyle 2.5 years - Rate (r\displaystyle r) = 12%\displaystyle 12\% per annum compounded half-yearly - Given: (1.06)5=1.3382\displaystyle (1.06)^5 = 1.3382 **Step 1: Calculate periodic rate (i\displaystyle i) and number of periods (n\displaystyle n)** - Periodic rate i=r2=12%2=6%=0.06\displaystyle i = \frac{r}{2} = \frac{12\%}{2} = 6\% = 0.06 per half-year. - Number of periods n=t×2=2.5×2=5\displaystyle n = t \times 2 = 2.5 \times 2 = 5 half-years. **Step 2: Calculate Maturity Value (A\displaystyle A)** A=P(1+i)nA = P(1 + i)^n A=50000(1.06)5A = 50000(1.06)^5 Using the given value (1.06)5=1.3382\displaystyle (1.06)^5 = 1.3382: A=50000×1.3382=Rs. 66,910A = 50000 \times 1.3382 = \text{Rs. }66,910 Hence, **Option A** is the correct answer.

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