Question

Tick the correct answer in each of the following:

The compound interest on Rs 10000 at $12\%$ per annum for $1\frac{1}{2}$ years, compounded annually, is

(a) Rs 1872 (b) Rs 1720 (c) Rs 1910.16 (d) Rs 1782

Answer 1

$\text{Principal (P) = Rs. 10000}\text{Rate (R) =}12\%p.a.\text{Period (n) =}1\frac{1}{2}\text{years}\therefore \text{Amount (A) = P}{(1+\frac{R}{100})}^n=Rs.10000{(1+\frac{12}{100})}^1(1+\frac{12}{2\times 100})=Rs.10000\times \frac{28}{25}\times \frac{53}{50}=Rs.11872\text{C.I. = A - P = Rs. 11872 - 10000}=Rs.1872\left(a\right)$