Question

Find the CI on Rs. 10,000 for 2 years at 20% per annum compounded semi - annually.

• A. Rs. 4650
• B. Rs. 4600
• C. Rs. 4641
• D. Rs. 4675

Answer 1

The correct option is C

Rs. 4641

Amount= P ${[1+\frac{R}{100}]}^n$
The interest is calculated semi annually ,
A = P ${[1+\frac{R}{2\times 100}]}^{n\times 2}$

Given r = 20 % n = 2 years

A = 10000 ${[1+\frac{20}{2\times 100}]}^{2\times 2}$
= 10000$(\frac{11}{10}{)}^4$
= 14,641

C.I = 14641 - 10000
= ₹ 4641