Multiple choice

The $C I$ on $\geq 50,000$ invested for one year,when interest is compounded half-yearly at $10$ $\%$ $p . a$ is

  1. $Rs.$ $5000$
  2. $Rs.$ $5125$
  3. $Rs.$ $6000$
  4. $Rs.$ $5500$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

At 10% per year compounded half-yearly, the rate per half-year is 5%. The compound interest on Rs. 50,000 for one year is 50,000 x (1.05^2 - 1) = Rs. 5,125.

AI explanation

Using the compound interest formula for half-yearly compounding, the principal is 50000, the rate is 5 percent per half-year, and the time is 2 half-years. The amount equals 50000 multiplied by the square of 1.05, which is 50000 times 1.1025, or 55125. Subtracting the principal of 50000 gives a compound interest of Rs. 5125.

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