1 View

Question : What is the compound interest on Rs. 20000 at 10% per annum for 1 year 6 months, compounded half-yearly?

Option 1: Rs. 3215.5

Option 2: Rs. 3200

Option 3: Rs. 3152.5

Option 4: Rs. 3300


Team Careers360 8th Jan, 2024
Answer (1)
Team Careers360 19th Jan, 2024

Correct Answer: Rs. 3152.5


Solution : Principal = Rs. 20000
Rate = 10% yearly, $\frac{R}{2}$ = 5% compounded half yearly
Time = 1 year 6 months compounded half yearly = 3 times
We know that,
$ A= P(1+\frac{\frac{R}{2}}{100})^{T}$
⇒ $ A= 20000(1+\frac{5}{100})^{3}$
⇒ $ A= 20000(\frac{105}{100})^{3}$
⇒ $ A= 20000\times\frac{21}{20}\times\frac{21}{20}\times\frac{21}{20}$
⇒ $ A= \frac{20}{8}\times9261$
⇒ $ A=23152.5$
Thus, compound interest = Amount – Principal = 23152.5 – 20000 = Rs. 3152.5
Hence, the correct answer is Rs. 3152.5.

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
GRE ® Registrations 2024
Apply
Apply for GRE® Test now & save 10% with ApplyShop Gift Card | World's most used Admission Test for Graduate & Professional Schools
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