Multiple choice

What would be the compound interest on Rs. 15,750 at 20% per annum, in two years, if the interest is compounded half yearly?

  1. Rs.5,213.25

  2. Rs. 3,307.5

  3. Rs. 7,305.975

  4. Rs. 7,309.575
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

For half-yearly compounding at 20% p.a. for 2 years: rate per half-year = 10%, periods = 4. Amount = 15750 × (1.1)⁴ = 15750 × 1.4641 = ₹23,059.575. Compound Interest = 23059.575 - 15750 = ₹7,309.575. Option D is correct.

Keep practicing — related questions