Lara deposited Rs.8,000 in a bank, which pays her compound interest at the rate of 10% per annum compounded half-yearly. What is the amount she will receive after 18 months?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. Rs.9,261.
We know that,
A = P(1 + R/100)T
A = Amount, P = Principle, R = Rate and T = Time
Here, P = Rs.8000, R = 10/2 = 5% and T = 3[compounded half-yearly]
Putting values in the question
A = 8000(1 + 5/100)3
A = 8000(1.05)3
A = Rs.9261