Multiple choice

What is the total interest obtained on a sum of Rs.5000 at a rate of 10% for 2 years when the interest is compounded semi-annually?(approx)

  1. Rs. 1078

  2. Rs. 1122

  3. Rs. 987

  4. Rs. 815

  5. Rs. 1024
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

For semi-annual compounding at 10% for 2 years: rate per period = 5%, number of periods = 4. Amount = 5000 × (1 + 0.05)^4 = 5000 × 1.2155 = 6077.53. Interest = 6077.53 - 5000 = 1077.53 ≈ Rs. 1078. This matches option A.

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