Question : What is the compound interest on INR 10000 in 1 year 6 months at 10% per annum, the interest being compounded half-yearly?
Option 1: INR 1625.50
Option 2: INR 1576.25
Option 3: INR 1826.50
Option 4: INR 1422.25
Correct Answer: INR 1576.25
Solution :
Rate,
Term,
Principal sum,
When compounded half-yearly,
Amount =
Compound interest =
=
=
=
=
=
=
=
= INR
Hence, the correct answer is INR 1576.25.