Multiple choice

Rs. 4000 amounts to Rs. 6000 in 3 years at _____ p.a. at compound interest, if interest is reckoned half yearly.

  1. 12%

  2. 14%

  3. 16%

  4. 8%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Using the compound interest formula A = P(1 + r/n)^(nt), where A=6000, P=4000, t=3, and n=2 (half-yearly), we get 6000 = 4000(1 + r/2)^6. Solving for r, (1.5)^(1/6) = 1 + r/2, which leads to r approximately 14%.

AI explanation

Using the compound interest formula with half-yearly compounding, the amount is 6000 = 4000 x (1 + R/200)^6. This simplifies to (1 + R/200)^6 = 1.5, so 1 + R/200 is approximately 1.0699. Solving for R gives R = 0.0699 x 200, which is approximately 14 percent. The correct answer is 14%.

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