The compound interest on ₹8,000 for 1 year 6 months at 20% p.a., compounded half-yearly, is:
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Correct answer: C
Explanation
Principal = ₹8000
Rate = 20% per annum
Time = 1 year 6 months = 3 half years
According to the formula:
Half yearly rate= 20/2= 10%
= 8000(1.1)³
= 8000 × 1.331
= 10648
Compound interest = 10648 − 8000 = ₹2648