Question

Find the compound interest on Rs. 10,000 for $1\frac{1}{2}$ years at 10% per annum, compounded half yearly.

• A. Rs 12,556.75
• B. Rs 11,576.25
• C. Rs 10,586.45
• D. Rs 12,134.00

Answer 1

The correct option is B

Rs 11,576.25

Here, Principal (P) = Rs. 10000

Rate of interest (R) = 10% = 5% (Compounded half yearly)
Time (n) = $1\frac{1}{2}$ years = 3 years (compounded half yearly)
Amount (A) $=P{(1+\frac{R}{100})}^n=10000{(1+\frac{5}{100})}^3=10000{(1+\frac{1}{20})}^3$
$=10000{\left(\frac{21}{20}\right)}^3=10000\times \frac{21}{20}\times \frac{21}{20}\times \frac{21}{20}$
= Rs. 11,576.25