Question

The C.I. to be paid when a sum of ₹ 4,000 is taken for one year at 6% per annum compounded semi annually is

(Calculator may be used for calculations)

• A. ₹ 203.6
• B. ₹ 223.6
• C. ₹ 243.6
• D. ₹ 263.6

Answer 1

The correct option is C

₹ 243.6

Given P = ₹ 4,000; R = 6 % and T = 1 year

Given, compound interest is reckoned half yearly.

Hence C.I for the first half year is given by

C. I = $\frac{PRT}{100}$

= $\frac{4,000\times 6\times 1}{2\times 100}$ = $₹120$

For the second part of the year or second half year ,

P = 4,000 + 120 = ₹ 4,120

Hence C. I for the second half year is given by,

C.I = $\frac{PRT}{100}$

= $\frac{4,120\times 6\times 1}{2\times 100}$ = $₹123.6$

Hence the total C.I = ₹ ( 120 + 123.6 )

= ₹ 243.6