Find the compound interest if Rs. 3000 was invested for 3 years at 20% p.a. interest compounded half yearly (nearest to a rupee).
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. Rs. 2315
P = 3000
r = 20% = 10% Half yearly
n = 3 years = 6 years half yearly
CI = P [(1 + r/100)n - 1]
CI = 3000 × [(11/10)6 - 1]
CI = 3000 × [(1771561 - 1000000)/1000000]
CI = 2314.6 ≈ Rs 2315