Find the compound interest on Rs. 25000 in 2 years at 4% per annum. The interest being compounded half yearly.
| Question | Find the compound interest on Rs. 25000 in 2 years at 4% per annum. The interest being compounded half yearly. | |
| Type | multiple_choice | |
| Option | Rs 3570.250 | incorrect |
| Option | Rs 2896.598 | incorrect |
| Option | Rs 2060.804 | correct |
| Option | Rs 1050.200 | incorrect |
| Solution | Given: 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 | |