The compound interest on Rs. 6000 at 10% per annum for 11/2 years, when the interest being compounded annually, is = ?

Answer: Option C

Solution

Answer: Option C

Solution:

$$\begin{array}{rl}& \text{Principal = Rs 6000}\\ & \text{Rate }\%\text{ = 10}\%\\ & \text{Time (t) = 1}\frac{1}{2}\text{ years}\end{array}$$

$$\begin{array}{rl}& {\text{2}}^{\text{nd}}\text{ year CI = 660}\\ & \text{6 months }{\text{2}}^{\text{nd}}\text{ year CI}\\ & \text{ = }\frac{660}{2}\text{ = 330}\\ & \text{Total CI}\\ & \text{ = }\left(600+330\right)\\ & =930\end{array}$$