Multiple choice

Calculate compound interest for Rs $10,000$ for 1 year at 8% compounded semi -annually.

  1. $817$
  2. $816$
  3. $815$

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Principal = 10000, Rate = 8% per annum, compounded semi-annually means 4% per half-year for 2 periods. Amount = 10000 * (1 + 0.04)^2 = 10000 * 1.0816 = 10816. Interest = 10816 - 10000 = 816.

AI explanation

Using the standard compound interest formula for semi-annual compounding, A = P(1 + R/200)^2, the amount becomes 10000(1 + 8/200)^2 = 10000(1.04)^2 = 10000(1.0816) = Rs. 10816. The compound interest is the amount minus the principal, so 10816 - 10000 = 816.

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