A sum of ₹10,000 was taken from a bank at the rate of 6% per annum to be compounded half yearly. How much has to be returned after one and half years?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Rs, 10,927
Given that
A sum (P) of Rs 10000
Rate: 6% p.a., half-yearly compounded, which means
R = 6/2 = 3% p.a
Time = 1.5 × 2 = 3 years
Formula used
Amount = P( 1 + R/100)time
Calculation
Amount = 10000 (1 + 3/100)3
= 10000 (103/100)3
= Rs 10927.27