Question

Find the CI on Rs. $2000$ at $15$ $\%$ p.a. for $5$ years when interest is compounded half-yearly.

• A. $2091.11$
• B. $4091.11$
• C. $6091.11$
• D. $8091.11$

Answer 1

The correct option is C $6091.11$

Amount after $5$ years $=$ $P{(1+\frac{r}{100})}^{2n}$
$=$ $2000\times {(1+\frac{15}{100})}^{10}$
$=$ Rs. $8091.11$
C.I. $=$ Amount $-$ Principal
$=8091.11-2000$
$=$ Rs. $6091.11$

Therefore, compund interest is Rs. $6091.11$.