Question

What will be $CI$ on an amount of $Rs.10000$ at the rate of $20$ p.c.pa. in two years if the interest rate is compounded half yearly ?

• A. $Rs.4525$
• B. $Rs.4232$
• C. $Rs.4641$
• D. $Rs.4461$

Answer 1

The correct option is C $Rs.4641$

$CI=A-P$

$A=P{(1+\frac{R}{100})}^n$

$R=10$ percent per halfly; $T=$ 4 times in $2$ years

$A=10,000P{(1+\frac{10}{100})}^4$

$A=14641$ INR

$CI=14641-10,000$

$CI=4641$ INR