Multiple choice

The compound interest on Rs. $5600$ for $1 \displaystyle \frac{1}{2}$ years at $10\%$ per annum, compounded annually, is

  1. Rs. $882.70$
  2. Rs. $873.50$
  3. Rs. $868$
  4. Rs. $840$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Amount after 1 year = 5600 * 1.1 = 6160. Interest for the remaining half year = 6160 * 0.1 * 0.5 = 308. Total interest = 560 + 308 = 868.

AI explanation

Using the compound interest formula for fractional time, the amount is 5600 multiplied by 1.1 for the first year, which equals 6160. The interest for the next half year is 5% of 6160, which equals 308. The total compound interest is 560 plus 308, giving Rs. 868.

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