A sum of Rs 10,500 amounts to Rs 13,650 in 2 years at a certain rate percent per annum simple interest. The same sum will amount to what in 1 year at the same rate if the interest is compound half-yearly (nearest to Rs 1)?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Rs 12,134.
A sum of Rs 10,500 amounts to Rs 13,650 in 2 years.
2 years interest = 13650 - 10500 = 3150
Yearly interest = 3150/2 = 1575.
Rate of interest = 1575/10500 × 100 = 15%.
According to the question,
A = 10500(1 + 7.5/100)2
A = 12134