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A sum of Rs. 4000 was invested at a rate of 22% for 1.5 years compounded half yearly. Find the compound interest. 1. Rs. 1540.62. Rs. 1470.53. Rs. 1410.54. Rs. 1370.5 |
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Answer» Correct Answer - Option 2 : Rs. 1470.5 Given: Sum = Rs. 4000 Rate = 22% compounded half yearly Time = 1.5 years Formula: If the interest is compounded half yearly, the rate of interest will be halved and time will be doubled. CI = P [1 + (R/100)]n – P Calculation: CI = P [1 + (R/100)]n – P CI = 4000 [1 + (11/100)]3 – 4000 ⇒ 5470.52 – 4000 = 1470.5 ∴ The compound interest is Rs. 1470.5 |
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