172 Views

Question : Find the amount (integral value only) if a sum of INR 6,500 is being borrowed at 10% interest per annum for 2 years if interest is compounded half-yearly.

Option 1: INR 8,250

Option 2: INR 7,650

Option 3: INR 8,150

Option 4: INR 7,900


Team Careers360 15th Jan, 2024
Answer (1)
Team Careers360 22nd Jan, 2024

Correct Answer: INR 7,900


Solution : $A=P\times [1+\frac{R}{100}]^{n}$, where $A$, $P$, $R$, $n$, and $T$ are the amount, principal, the rate is half and n = 4 in two years, respectively.
According to the question,
$A=6500\times [1+\frac{5}{100}]^{2\times 2}$
⇒ $A=6500\times [1+0.05]^{4}$
⇒ $A=6500\times [1.05]^{4}$
$\therefore$ $A=$ INR 7,900
Hence, the correct answer is INR 7,900.

Know More About

Related Questions

TOEFL ® Registrations 2024
Apply
Accepted by more than 11,000 universities in over 150 countries worldwide
Manipal Online M.Com Admissions
Apply
Apply for Online M.Com from Manipal University
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books