Question

Find the C.I paid when a sum of ₹ 20,000 is taken for one year and six months at $5\%$ per annum compounded annually.

• A. Rs 1560
• B. Rs 1530
• C. Rs 1545
• D. Rs 1525

Answer 1

The correct option is D

Rs 1525

Given P = ₹ 20,000 R = 5 % and T = $1\frac{1}{2}$ years

Hence C. I for the first year

P = ₹ 20,000 R = 5 % and T = 1 year

= $\frac{P\times R\times T}{100}$

= $\frac{20,000\times 5\times T}{100}$

= ₹ 1000

Hence the principal for the next 6 months = 20,000 + 1000 = ₹ 21,000

Hence C. I for the 6 months

P = ₹ 21,000 R = 5 % and T = $\frac{1}{2}$ year

= $\frac{P\times R\times T}{100}$

= $\frac{21,000\times 5\times 1}{2\times 100}$

= ₹ 525

Hence the total C.I for $1\frac{1}{1}$ years = 1000 + 525 = ₹ 1525