Find the compound interest on ₹3,00,000, compounded half-yearly, for 2 years at the rate of 20% per annum.
Show answer & explanation
Correct answer: C
Explanation
The Correct answer is option 3 i.e. ₹1,83,153
Given that
Principal = ₹3,00,000
Rate = 20%, Time = 2 years
When compounded half-yearly,
The rate = 20%/2 = 10% and time = 2.5 × 2 = 5 years
Formula used
Compound interest = Principal (1 + rate/100)time - Principal
Calculation
Compound interest = 300000 (1 + 10/100)5 - 300000
= 483153 - 300000 = Rs. 183153