Find the compound interest on Rs. 25000 in 2 years at 4% per annum. The interest being compounded half yearly.

QuestionFind the compound interest on Rs. 25000 in 2 years at 4% per annum. The interest being compounded half yearly.
Typemultiple_choice
OptionRs 3570.250incorrect
OptionRs 2896.598incorrect
OptionRs 2060.804correct
OptionRs 1050.200incorrect
SolutionGiven:
Principal = Rs. 25000, Rate = 4 % per half year, Time = 2 years = 4 half years
Therefore,
Amount = P( 1 + (R/2)/100)2n   Amount = Rs. [25000*(1+ 2/100)4] = Rs. (25000 * 51/50*51/50*51/50* 51/50)
= Rs. 27060.804
Therefore,
C.I. = Rs. ( 27060.804 – 25000)
= Rs 2060.804
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