Question

Calculate compound interest for Rs $15,000$ for $1$ year at $16$% compounded semi -annually.

• A. Rs.$3172$
• B. Rs.$2496$
• C. Rs.$3000$
• D. Rs.$2572$

Answer 1

The correct option is B Rs.$2496$

Given:

$\Rightarrow$ $P=$ Rs.$15000,T=1year=2$ and $R=16\%$

$R_{eq}=8\%$ Since, semi-annually compounded.

$T_{eq}=2.T=2.$ Since, semi-annually compounded.

$\Rightarrow$ $A=P(1+\frac{R_{eq}}{100}{)}^{T_{eq}}$

$\Rightarrow$ $A=15000\times (1+\frac{8}{100}{)}^2$

$\Rightarrow$ $A=15000\times (\frac{27}{25}{)}^2$

$\Rightarrow$ $A=15000\times \left(\frac{729}{625}\right)$

$\therefore$ $A=$Rs.$17496$

$\therefore$ $C.I.=A-P=$Rs. $17496-$Rs.$15000=$Rs.$2496.$