Multiple choice

Priyanka deposits Rs. 5000 compounded half yearly in a bank that pays compound interest at the rate of 5% per year. Find the amount that Priyanka has in her account after 3 years.

  1. Rs. 5700

  2. Rs. 5795

  3. Rs. 5790

  4. Rs. 5860

  5. Rs. 5850
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Principal = 5000, Rate = 5% per annum = 2.5% per half-year, Time = 3 years = 6 half-years. Amount = 5000 * (1 + 0.025)^6 = 5000 * (1.025)^6 = 5000 * 1.15969 = 5798.45. The closest option is 5795.

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