Question

Calculate the amount on a sum of ₹8000 for 1 year at an interest rate of $10\%$ per annum compounded half-yearly.

• A. ₹8802
• B. ₹8820
• C. ₹8880
• D. ₹8088

Answer 1

The correct option is B

₹8820

Given:

P = ₹8000

R = $10\%$ per annum, so will be $5\%$ if compounded half-yearly.

n = 2 (As 1 years has 2 half years in it)

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

Substituting the value we get

A = $8000\times (1+\frac{5}{100}{)}^2$

A = 8000$\times$$\frac{21}{20}\times$$\frac{21}{20}$

A = ₹8820