A sum of ₹10,000 was invested at a rate of 10% per annum for a period of 2 years, compounded half-yearly. Find the compound interest.
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. ₹2,155.0625.
P = 10000
R = 10/2 = 5%
T = 2 years = 4
A = P (1 + r/100)n
= 10000 (1 + 5/100)4
= 10000 (1 + 1/20)4
= 10000 × (21/20) × (21/20) × (21/20) × (21/20)
= 12155.0625
CI = 12155.0625 - 10000 = 2155.0625
Therefore, the compound interest is ₹2,155.06.