Question

The compound interest on Rs 10000 in 2 years at 4% per annum being compounded half yearly is

• A. Rs $832.24$
• B. Rs $828.82$
• C. Rs $824.32$
• D. Rs $912.86$

Answer 1

The correct option is C Rs $824.32$

Principal=Rs.10000 ,Rate=2% per half year,Time=2years=4half-years
$Amount=P{(1+\frac{R}{100})}^T$
$\Rightarrow 10000{(1+\frac{2}{100})}^4$
$\Rightarrow 10000\times \frac{102}{100}\times \frac{102}{100}\times \frac{102}{100}\times \frac{102}{100}$
$\Rightarrow 10000\times \frac{51}{50}\times \frac{51}{50}\times \frac{51}{50}\times \frac{51}{50}$
$Amount=10824.32$
$C.I=Amount-Principal$
$C.I=10824.32-10000$
$C.I=Rs.824.32$