Home/ Questions/Q 355664
Next
In Process
Neerendra Bhai Hayer
Asked: 2022-10-31T11:41:38+05:30 In:

Find the interest on Rs. 19,000 for 2 years at the rate of 40% per year compounded semi annually.
1. Rs. 20,548.4
2. Rs. 20,398.4
3. Rs. 15,548.5
4. Rs. 30,548.4

Find the interest on Rs. 19,000 for 2 years at the rate of 40% per year compounded semi annually.
1. Rs. 20,548.4
2. Rs. 20,398.4
3. Rs. 15,548.5
4. Rs. 30,548.4
Probability
Leave an answer

Leave an answer

Browse

1 Answer

  1. Correct Answer – Option 2 : Rs. 20,398.4

    Given:

    Principle = 19000

    Time = 2 years

    Rate = 40%

    Condition = Semi annually 

    Concept used:

    The interest compounded is Semi-annually ( half yearly )

    New rate = Rate/2 

    New time = Time × 2

    Formula used:

    C.P = P{(1 + R/100)T – 1}

    Where, 

    C.P → Compound interest 

    P → Principal 

    R → Rate 

    T → Time 

    Calculations:

    New rate = 40/2 = 20%

    New time = 2 × 2 = 4

    C.P = P{(1 + R/100)T – 1}

    ⇒ 19000{(1 + 20/100)4 –  1}

    ⇒ 19000{(1 + 1/5)4 – 1}

    ⇒ 19000 {(6/5)4 – 1}

    ⇒ 19000 {(6/5 × 6/5 × 6/5 × 6/5) – 1}

    ⇒ 19000{(1296/625) – 1}

    ⇒ 19000(1296 – 625)/625

    ⇒ 19000 × (671/625)

    ⇒ 30.4 × 671

    ⇒ Rs. 20,398.4

    ∴ The compound interest is Rs. 20,398.4

    • 0