Compound Interest - Quantitative Aptitude (MCQ) questions for Q. 20421

Q.  Find the compound interest on Rs. 25000 in 2 years at 4% per annum. The interest being compounded half yearly.
- Published on 07 Jul 17

a. Rs 3570.250
b. Rs 2896.598
c. Rs 2060.804
d. Rs 1050.200

ANSWER: Rs 2060.804
 
Given:
Principal = Rs. 25000, Rate = 4 % per half year, Time = 2 years = 4 half years
Therefore,
Amount = P( 1 + (R/2)/100)2n

Amount = Rs. [25000*(1+ 2/100)4] = Rs. (25000 * 51/50*51/50*51/50* 51/50)
= Rs. 27060.804
Therefore,
C.I. = Rs. ( 27060.804 – 25000)
= Rs 2060.804

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