Mohan invested ₹5,000 in a bank which offered interest at the rate of 10% per year compounded semi-annually. How much amount will he get after 2 years? [Give your answer correct to the nearest integer value.]

₹6,078

Interest is compounded half - yearly,

Actual rate of interest = \(\frac{10}{2}\)% = 5%

From the formula for compound interest, we know,

Amount = P(1+$\frac{R}{100})^t$

 = 5000 [ 1 + \(\frac{5}{100}\) ]4

 = 5000 [ \(\frac{21}{20}\)  × \(\frac{21}{20}\)  × \(\frac{21}{20}\)  × \(\frac{21}{20}\)  ]

= 5000 [ \(\frac{ 194481}{160000}\)   ]

= 6077.53

= 6078  ( nearest integer value )