Question

Find the compound interest on ₹48000 for one year at $8\%$ per annum when compounded half yearly.

• A. ₹4916.80
• B. ₹3196.80
• C. ₹2196.00
• D. ₹3916.80

Answer 1

The correct option is D ₹3916.80

Principal (P) = ₹48000
Rate (R) $=8\%p.a.$
Time (n)= 1 year

Interest is compounded half yearly, then Amount is given by
$\therefore A=P{(1+\frac{R}{200})}^{2n}$
$=48000{(1+\frac{8}{200})}^2=48000\times \frac{26}{25}\times \frac{26}{25}$
$=76.8\times 26\times 26$
$=₹51916.80$

Therefore, compound interest = A-P
= ₹(51916.80 - 48000)
= ₹3916.80