Question

Find the amount and the compound interest on Rs 10,000 for $1\frac{1}{2}$ years at 10% per annum, compounded annually.

• A. Rs. 1550
• B. Rs. 11550
• C. Rs. 12350
• D. Rs. 2350

Answer 1

Answer: (A), (B)

The correct options are
A

Rs. 1550

B

Rs. 11550

Principal = Rs 10000,

Rate of interest (R) = 10%

Time (n) = 1 years
Amount (A) for 1 year = $P{(1+\frac{R}{100})}^n=10000{(1+\frac{10}{100})}^1=10000{(1+\frac{1}{10})}^1$
$=10000{\left(\frac{11}{10}\right)}^1=10000\times \frac{11}{10}$
=Rs 11,000
Interest for 0.5 year $=\frac{11000\times 1\times 10}{2\times 100}Rs.550$
$\therefore$ Total amount = Rs 11,000 + Rs 550 = Rs 11,550
Now, C.I = A - P = Rs 11,550 - Rs 10000 = Rs 1550