What will be the compound interest accrued on an amount of Rs.10000 @…

Question

What will be the compound interest accrued on an amount of Rs.10000 @ 20 p.c.p.a in 2 years if the interest is compounded half - yearly?

Accepted Answer

Option C. Rs. 4641. Answer & Solution Answer: Option C Solution: & P = Rs.10000, & R = 20\% \,p.a. & \,\,\,\,\,\,\, = 10\% \, per\, half year & T = 2\, years = 4\, half\, years & Amount & = Rs. [ 10000 × ( 1 + 10100 )^4 ] & = Rs. ( 10000 × 1110 × 1110 × 1110 × 1110 ) & = Rs.14641 & C .I . = Rs. ( 1…