Correct Answer – Option 2 : ₹ 10,551

GIVEN:

principal = Rs. 84500

interest rate = 8% per annum

time = 1 year 6 months

compounded half-yearly

CONCEPT:
for half-yearly, the time period will be doubled and the rate will be halved 

FORMULA USED:
\(A=P(1+\frac{R}{100})^t\)

CALCULATION:

R = 4%

Time period (t) = 3 years

\(A =84500(1+\frac{4}{100})^3 \)

\(\\A=84500(1.04)^3\)

\(\\A\approx95051\)

\( \\interest =95051 – 84500=Rs10551\)

ALTERNATE SOLUTION:

R = 4%

T = 3 years

\(4\% =\frac{1}{25} \)

\(\\\therefore P = 25\space ratio , A= 26\space ratio\)

\(\\for\space3years\)

\(\\\Rightarrow\space P=(25)^3=15625 \space ratio\)

\( \\A=(26)^3 = 17576\space ratio\)

\(\\interest =17576-15625=1951\space ratio \)

\(\\15625\space ratio=Rs. 84500 \)

\(\\\therefore 1951\space ratio \approx Rs. 10551\)