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  • Find the compound interest on Rs. 5000 in 2 years at 4% per annum, the interest being compounded half yearly.  Option: 1 R 412.16

Find the compound interest on Rs. 5000 in 2 years at 4% per annum, the interest being compounded half yearly.

 

Option: 1

R 412.16


Option: 2

R 312.16


Option: 3

R 400.16


Option: 4

R 420.16

 


Answers (1)

best_answer

Here, Principal P = Rs. 5000
Rate R = 4% pa
Time n = 2 years
Now according to the formula,
$\text { Amount }  =\mathrm{P}\left(1+\frac{R}{2 \times 100}\right)^{2 n}=5000\left(1+\frac{4}{200}\right)^4$
$ =\left(5000 \times \frac{51}{50} \times \frac{51}{50} \times \frac{51}{50} \times \frac{51}{50}\right)=\left(\frac{51 \times 51 \times 51 \times 51}{1250}\right)$
$=\mathrm{R} 5412.16$
$\therefore Compound Interest = R (5412.16 – 5000) = R 412.16$

 

Posted by

rishi.raj

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