Mathematics
The compound interest on ₹ 5000 at 10% per annum and in one year compounded half-yearly is :
₹ 1050
₹ 525
₹ 512.50
₹ 5512.50
Compound Interest
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Answer
Since, time is 1 year so interest will be compounded half-yearly twice.
For first half-year :
P = ₹ 5000
T = year
R = 10%
By formula,
Interest =
Substituting values we get :
Interest = = ₹ 250.
For second half-year :
P = ₹ 5000 + ₹ 250 = ₹ 5250
T = year
R = 10%
By formula,
Interest =
Substituting values we get :
Interest = = ₹ 262.50
Total compound interest = ₹ 250 + ₹ 262.50 = ₹ 512.50
Hence, Option 3 is the correct option.
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