ABC26GN4147 · Compound Interest
Subject: General Aptitude · Chapter: Compound Interest · Exam: 2009 · Marks: · Difficulty:
What will be the compound interest accrued on an amount of ₹ 10000 @ 20 p.c.p.a. in 2 years if the interest is compounded half-yearly?
(a)₹ 4400
(b)₹ 4600
(c)₹ 4641
(d)₹ 4680
(e)None of these
Answer
Explanation
$P=₹ 10000, R=20 \%$ p.a. $=10 \%$ per half-year; $T=2$ years = 4 half-years. $$\begin{aligned} & \text { Amount }=₹\left[10000 \times\left(1+\frac{10}{100}\right)^{4}\right] \\ & \quad=₹\left(10000 \times \frac{11}{10} \times \frac{11}{10} \times \frac{11}{10} \times \frac{11}{10}\right)=₹ 14641 . \\ & \therefore \text { C. I. }=₹(14641-10000)=₹ 4641 . \end{aligned}$$
Explanation as extracted from the printed page; notation may be imperfect.
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