KnowledgeBoat Logo
|

Mathematics

The compound interest on ₹ 5000 at 10% per annum and in one year compounded half-yearly is :

  1. ₹ 1050

  2. ₹ 525

  3. ₹ 512.50

  4. ₹ 5512.50

Compound Interest

69 Likes

Answer

Since, time is 1 year so interest will be compounded half-yearly twice.

For first half-year :

P = ₹ 5000

T = 12\dfrac{1}{2} year

R = 10%

By formula,

Interest = P×R×T100\dfrac{P \times R \times T}{100}

Substituting values we get :

Interest = 5000×12×10100\dfrac{5000 \times \dfrac{1}{2} \times 10}{100} = ₹ 250.

For second half-year :

P = ₹ 5000 + ₹ 250 = ₹ 5250

T = 12\dfrac{1}{2} year

R = 10%

By formula,

Interest = P×R×T100\dfrac{P \times R \times T}{100}

Substituting values we get :

Interest = 5250×12×10100\dfrac{5250 \times \dfrac{1}{2} \times 10}{100} = ₹ 262.50

Total compound interest = ₹ 250 + ₹ 262.50 = ₹ 512.50

Hence, Option 3 is the correct option.

Answered By

31 Likes


Related Questions