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      Question

       If a sum of Rs. 6,500 is to be borrowed for 2 years at

      10% per annum compounded half-yearly, find the compound amount (integer values only).
      A 7900 Correct Answer Incorrect Answer
      B 7950 Correct Answer Incorrect Answer
      C 8240 Correct Answer Incorrect Answer
      D 8460 Correct Answer Incorrect Answer

      Solution

      Given sum =6500 Rs. Time =2 years =4 half years. Rate =10%/annum =5% half year. Effective rate =5%=1/20 R= (34481/160000) Ă—100=.21550Ă—100=21.55% Now interest =(6500Ă—21.55)/100=1400.75=1400Rs(approx.) Compound amount =6500+1400=7900.

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