Question

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

• A. 836
• B. 895.2
• C. 824.32
• D. 866.45

Answer 1

The correct option is C

824.32

Principal = $Rs.10000$; Rate = $2\%$ per half-year; Time = $2year$; Time = $2years$ = $4halfyears$.

$\therefore$ Amount = $Rs.[10000\times (1+\frac{2}{100}{)}^4]=Rs.(10000\times \frac{51}{50}\times \frac{51}{50}\times \frac{51}{50}\times \frac{51}{50})$

= $Rs.10824.32$

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