Multiple choice

Find the compound interest on Rs 7500 in 2 years at 6% per annum, the interest is compounded half-yearly.

  1. Rs 941.31

  2. Rs 990

  3. Rs 845.5

  4. Rs 845
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Half-yearly compounding means rate = 6%/2 = 3% per period, periods = 2×2 = 4. A = 7500(1.03)^4 = 7500(1.12550881) = 8441.31. CI = 8441.31 - 7500 = 941.31. The answer correctly applies the compound interest formula with half-yearly compounding adjustment.

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