Multiple choice

Calculate the compound interest(I) on : Rs. $8,000$ in $2\displaystyle \frac{1}{2}$ years at $15\%$ per annum.

  1. $8000$
  2. $11000$
  3. $11373.50$
  4. $3373.50$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

For 2.5 years at 15%: Interest for 1st year = 8000 * 0.15 = 1200. Amount = 9200. Interest for 2nd year = 9200 * 0.15 = 1380. Amount = 10580. Interest for 0.5 year = 10580 * 0.15 * 0.5 = 793.5. Total Interest = 1200 + 1380 + 793.5 = 3373.50.

AI explanation

For fractional time periods, the amount is calculated as A = P(1 + r/100)^a(1 + br/100), giving 8000(1 + 15/100)^2(1 + (1/2)(15)/100). This simplifies to 8000(1.15)^2(1.075) = 11373.50. The compound interest is the amount minus the principal, which is 11373.50 - 8000 = 3373.50. The result is 3373.50.

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