Question

Find the C.I paid when a sum of ₹ 40,000 is taken for one year and six months at $5\%$ per annum compounded annually.

• A. ₹ 2150
• B. ₹ 2050
• C. ₹ 2250
• D. ₹ 2550

Answer 1

The correct option is B

₹ 2050

Given P = ₹ 40,000 R = 5 % and T = $1\frac{1}{2}$ years

Hence C. I for the first year

P = ₹ 40,000 R = 5 % and T = 1 year

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

= $\frac{40,000\times 5\times 1}{100}$

= ₹ 2000

Hence the principal for the next 6 months = 40,000 + 2000 = ₹ 42,000

Hence C. I for the 6 months

P = ₹ 42,000 R = 5 % and T = $\frac{1}{2}$ year

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

= $\frac{42,000\times 5\times 1}{2\times 100}$

= ₹ 1050

Hence the total C.I for $1\frac{1}{2}$ years = 1000 + 1050 = ₹ 2050