Question

If scheme P offers compound interest (compounded half-yearly) @ 16 p.c.p.a., What would be the sum of interest earned by Gautam and Rudra from scheme P after 1 yr?

• A. Rs. 10244
• B. Rs. 10464
• C. Rs. 9872
• D. Rs. 9984
• E. Rs. 9442

Answer 1

The correct option is D Rs. 9984

If compared half-yearly, then $R=\frac{R}{2}\%$ and Time T = 2T

Here, $R=\frac{16}{2}=8\%$ and Time = 2 yr

Again, applying rule $\frac{x+y+xy}{100}$

$R=8+8+\frac{8\times 8}{100}=16.64\%$

Sum of interest

$=(\frac{600\times 30\times 16.64}{100}+\frac{600\times 70\times 16.64}{100})$

$=2995.2+6988.8=Rs.9984$