Question

Find the compound interest on ₹10,000 in 2 years at 4$\%$ per annum, the interest being compounded half-yearly.

• A. ₹836.22
• B. ₹895.42
• C. ₹824.32
• D. ₹866.20

Answer 1

The correct option is C

₹824.32

Principal (P) = ₹10000

Rate (R) = 4% per annum which is 2% per half-year

Time (n) = 2 years = 4 half years.

Using the formula,
$A=P\times (1+\frac{R}{100}{)}^n$
we have,
Amount = $[10000\times (1+\frac{2}{100}{)}^4]=(10000\times \frac{51}{50}\times \frac{51}{50}\times \frac{51}{50}\times \frac{51}{50})=₹10824.32$

Compound Interest = Amount - Principal

$\therefore$ C.I. = ₹(10824.32 - 10000) = ₹824.32