Question

Calculate compound interest for Rs $15,000$ for $4$ year at $16$% compounded semi -annually.

• A. $12763$
• B. $11159$
• C. $10159$
• D. $9159$

Answer 1

Answer: (A)

$12763$

Since the interest is compounded semi-annually,

$r=\frac{16\%}{2}=8\%$

$\text{C.I.}=P[{(1+\frac{r}{100})}^n-1]$

$\text{C.I.}=15000[{(1+\frac{8}{100})}^8-1]$

$⟹\text{C.I.}=\text{Rs.}12,763$.