Question

    Determine the compound interest earned on a principal

    amount of Rs. 10,000, which is invested at an annual interest rate of 42%, with interest being compounded semi-annually, over the course of one year.
    A Rs.4600 Correct Answer Incorrect Answer
    B Rs.4620 Correct Answer Incorrect Answer
    C Rs.4641 Correct Answer Incorrect Answer
    D Rs.4000 Correct Answer Incorrect Answer
    E none of these Correct Answer Incorrect Answer

    Solution

    ATQ, Rate = (42/2) = 21% per 6 months Desired interest = 10000 × [(1.21)2 – 1] = 10000 × 0.4641 = Rs.4641

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