Question 59

What will be the compound interest on a sum of ₹15,000 at the interest rate of 8% per annum in one year, interest compounded semi-annually'?

Solution

Given,

Sum = Principal = ₹15,000

Rate = 8 %, $$\frac{8}{2}=4\$$ (Compounded semi-annually)

Time = 1 yr , $$1\times\ 2=2\ $$ (Compounded semi-annually)

We Know,

Compound Interest = CI = $$P\left(1+\frac{R}{100}\right)^n-P$$

$$15000\left(1+\frac{4}{100}\right)^2-15000$$

$$\left(15000\times\ \frac{26}{25}\times\ \frac{26}{25}\right)-15000$$

By solving, we get

CI = ₹1224

Hence, Option A is correct.

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