Question : If interest is compounded half-yearly, then find the compound interest on INR 8,000 at 20% p.a. for 1 year.
Option 1: INR 1,675
Option 2: INR 1,690
Option 3: INR 1,685
Option 4: INR 1,680
Correct Answer: INR 1,680
Solution : Use : Amount = P(1+ $\frac{r}{n})^{nt}$, where r = interest rate (decimal) P = Principal n = number of terms in a year t = time period According to the question Amount = P(1+ $\frac{r}{n})^{nt}$ Now, ⇒ Amount = 8000(1+ $\frac{0.20}{2})^{2 × 1}$ = 8000(1+ $0.10)^{2}$ = 8000 × 1.21 = 9680 Compound Interest = Amount − Principal = 9680 − 8000 = INR 1,680 Hence, the correct answer is INR 1680.
Result | Eligibility | Application | Selection Process | Cutoff | Admit Card | Preparation Tips
Question : Find the amount of a sum of Rs. 7,500 invested on compound interest at 8% p.a. for 1.5 years when the interest is compounded half-yearly.
Question : What is the compound interest on a sum of INR 37,500 for $1 \frac{1}{3}$ years at a rate of 12% p.a. if the interest is compounded 8 - monthly?
Question : The compound interest amounts on a certain sum at a certain rate percentage p.a. for the second year and third year are INR 3,300 and INR 3,630, respectively. What is the amount of the same sum at the same rate in $2 \frac{1}{2}$ years, interest compounded yearly?
Question : The compound interest on a certain sum invested for 2 years at 10% per annum is INR 1,522.50, the interest being compounded yearly. The sum is:
Question : What is the compound interest on a sum of INR 25,000 after three years at a rate of 12% per annum interest compounded yearly?
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile