Question

Calculate the amount on a sum of ₹4000 for 2 years at an interest rate of 10% per annum compounded half-yearly.

• A. ₹4782.025
• B. ₹4822.025
• C. ₹4862.025
• D. ₹4882.025

Answer 1

The correct option is C

₹4862.025

Given:

P = ₹4000

R = 10% per annum, which will be 5% if compounded half-yearly

n = 4 (As 2 years has 4 half years in it)

Amount will be calculated by A = $P\times (1+\frac{R}{100}{)}^n$

Substituting the value we get

A = $4000\times (1+\frac{5}{100}{)}^4$

A = $4000\times \frac{21}{20}\times \frac{21}{20}\times \frac{21}{20}\times \frac{21}{20}$

A = ₹4862.025