Multiple choice

What is be the compound interest (in Rs.) accrued on an amount of Rs. 15000 at the rate of 20 per cent annum in two years, if the interest is compounded half-yearly?

  1. 6196.5

  2. 6916.5

  3. 4641.5

  4. 6961.5

  5. None of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Principal = 15000, Rate = 20% p.a. compounded half-yearly means 10% per half-year for 4 periods. Amount = 15000 * (1.1)^4 = 15000 * 1.4641 = 21961.5. Interest = 21961.5 - 15000 = 6961.5.

AI explanation

Using the compound interest formula with half-yearly compounding, the rate becomes 10 percent and the time becomes 4 half-yearly periods. The amount equals 15000 multiplied by 1.1 raised to the 4th power, yielding 21961.5. Subtracting the principal of 15000 from this amount gives a compound interest of Rs. 6961.5.

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