Multiple choice

If a sum of Rs. 10000 is deposited for per year at 10% compounded half yearly then the interest will be.

  1. Rs. 1000

  2. Rs. 1025

  3. Rs. 975

  4. Rs. 925
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Principal Rs. 10,000, rate 10% p.a., compounded half-yearly for 1 year. A = P(1 + r/200)^n = 10,000 × (1.05)^2 = 10,000 × 1.1025 = 11,025. Interest = 1,025. Distractors use simple interest or miscalculate compounding.

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