Question : If interest is compounded half-yearly, then find the compound interest on INR 8,000 at the rate of 20% per annum for 1 year.
Option 1: INR 1,675
Option 2: INR 1,690
Option 3: INR 1,685
Option 4: INR 1,680
Correct Answer: INR 1,680
Solution :
Given: Total sum = INR 8000, rate = 20% per annum and time = 1 year.
Here, the interest is compounded half-yearly,
So, interest rate (r) = $\frac{20}{2}$ = 10%,
time (n) = 2, principle (p) = INR 8000
Compound interest (CI) = $p[(1+\frac{r}{100})^n-1]$
= $8000[(1+\frac{10}{100})^2-1]$
= $8000[(\frac{11}{10})^2-1]$
= $8000[\frac{121}{100}-1]$
= $8000×\frac{21}{100}$
= INR $1680$
Hence, the correct answer is INR 1680.
Related Questions
Know More about
Staff Selection Commission Combined Grad ...
Result | Eligibility | Application | Selection Process | Preparation Tips | Admit Card | Answer Key
Get Updates Brochure
Your Staff Selection Commission Combined Graduate Level Exam brochure has been successfully mailed to your registered email id “”.
Upcoming Exams
Trending Articles around SSC CGL
