By Ajay Kumar

Verified by Ajay Kumar

The compound interest on ₹8,000 for 1 year 6 months at 20% p.a., compounded half-yearly, is:

  1. ₹2,880

  2. ₹2,400

  3. ₹2,648

  4. ₹3,000

Answer: C

Solution

Half-yearly rate = 20 ÷ 2 = 10%. Number of periods = 3. Amount = \(8000(1+\frac{10}{100})^3\) = ₹10,648. Compound Interest = ₹10,648 − ₹8,000 = ₹2,648.

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