Multiple choice

A man lends Rs. $5,500$ at the rate of $8\%$ per annum. Find the amount if the interest is compounded half-yearly and the duration is one year.

  1. Rs. $5,888.74$
  2. Rs. $5,948.80$
  3. Rs. $5,768.69$
  4. Rs. $6,234.17$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

For principal P=5500, rate R=8%, compounded half-yearly for 1 year (n=2 periods), the amount is P*(1 + (R/2)/100)^n = 5500 * (1 + 0.04)^2 = 5500 * 1.0816 = 5948.80.

AI explanation

For half-yearly compounding, the rate is 4 percent per half-year and the time is 2 half-years. Using the compound interest formula, the amount equals 5500 multiplied by 1.04 squared, which calculates to 5500 multiplied by 1.0816. The final amount is Rs. 5,948.80.

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