If the interest is compounded half-yearly, then, C.I. when the principal is ₹ 7,400, the rate of interest is 5% p.a. and the duration is one year, is:

1. ₹ 373.63

2. ₹ 374.63

3. ₹ 373.36

4. ₹ 373

Given,

P = ₹ 7,400

r = 5%

n = 1 year

Given,

When interest is compounded half-yearly.

By formula,

$A = P \times \Big(1 + \dfrac{r}{2 \times 100}\Big)^{n \times 2}$

Substituting values we get :

$\Rightarrow A = 7400 \times \Big(1 + \dfrac{5}{2 \times 100}\Big)^{1 \times 2} \\[1em] \Rightarrow A = 7400 \times \Big(\dfrac{200 + 5}{200}\Big)^2 \\[1em] \Rightarrow A = 7400 \times \Big(\dfrac{205}{200}\Big)^2 \\[1em] \Rightarrow A = 7400 \times \Big(\dfrac{41}{40}\Big)^2 \\[1em] \Rightarrow A = 7400 \times \dfrac{1681}{1600} \\[1em] \Rightarrow A = 7774.625$

Compound interest = Final amount - Initial principal

= ₹ 7774.625 - ₹ 7400

= ₹ 374.625 ≈ ₹ 374.63

Hence, option 2 is correct option.