A company puts ₹50,000 into a sinking fund at the end of every half-year for 3 years, at 8% a year compounded half-yearly. What is the fund worth at the end? (Take $(1.04)^{6} = 1.2653$.)

Explanation

1. 01

   Per half-year, $i = 0.04$ and there are $n = 6$ deposits.

2. 02

   $A = 50{,}000 \times \frac{0.2653}{0.04} = 50{,}000 \times 6.6325 = 3{,}31{,}625$ rupees.