Find the compound interest on ₹10,000 for 2 years at 20% per annum, interest is payable half-yearly.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. ₹4,641.
Compund interest payable half yearly = P[(1 + R/200)2T] - P
where P is principal, R is rate and T is time.
According to the given question,
Compound interest = 10000[(1 + 20/200)4] - 10000
⇒ 10000[14641/10000] - 10000
⇒ 10000[(14641/10000) - 1]
⇒ 10000 × 4641/10000 = 4641