Multiple choice

Find the compound Interest on $Rs\ 32000$ at $20\%$ per annum for $1$ year, compounded half yearly.

  1. $6320$
  2. $6720$
  3. $6400$
  4. $6500$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

For compounding half-yearly, the rate is 20% / 2 = 10% per half-year, and the time is 2 half-years. The amount after 1 year is 32,000 * (1 + 10/100)^2 = 38,720 rupees. The compound interest is 38,720 - 32,000 = 6,720 rupees.

AI explanation

Using the compound interest formula for half-yearly compounding, the amount is calculated as 32000 * (1 + 20/200)^(2 * 1). This simplifies to 32000 * (1.1)^2, resulting in a total amount of 32000 * 1.21 = 38720. The compound interest is the total amount minus the principal, which is 38720 - 32000 = 6720.

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