# Word Problem 13

**Problem 13: A saving bank pays interest at 4% per annum and interest being calculated every 6 months. A sum of Rs 100 was deposited on January 1, 1973. After one year the amount will be;**

**a. Rs 104 b. Rs 104.40 c. Rs 104.04 d. Rs 102.02**

**Solution:**

simple arithmetic questions and answers

P(principal or initial amount) = Rs 100

R(rate) = 4% pa

Interest paid =every six months

T(term) =1 year

A (amount after the term) =?

This problem can be solved using compound interest formula !

The formula is ;

Here n is the number of terms or transactions which will be 2 in one year, so ;

n=2

R=4/2=2% for six months term each

Putting values in the formula;

**So, the option c is correct**

(css screening test math)