A sum of Rs. 2,100 is invested for 1 year at 20% per annum, interest compounded half-yearly. Find the compound interest.
Show answer & explanation
Correct answer: B
Explanation
The Correct answer is option 2 i.e. Rs. 441.
Principal P = Rs 2100
Time n = 1 year = 2 (Half yearly)
Rate of interest r = 20% = 20/2 = 10% (Half yearly)
Compound interest = P{(1 + r/100)n - 1}
= 2100{(1 + 10/100)2 - 1} = 2100{121/100 - 1}
= 2100 × 21/100 = Rs 441