Question

Find the compound interest for $Rs.1,000$ for $4$ years at $5$% p.a. when it is compounded half-yearly.

• A. $220$
• B. $218$
• C. $215$
• D. $250$

Answer 1

The correct option is B $218$

$CI=1,000{(1+\frac{\frac{5}{2}}{100})}^{4\times 2}-1,000$
$=1,000(1.05{)}^8-1,000$
$=1,218-1,000=218$.