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    Question

    What is the total amount received from an investment of

    Rs. 8,000 for a period of 18 months, if the compound interest is calculated at 18% per annum and compounded semi-annually (once every 9 months)?
    A Rs. 10,305.80 Correct Answer Incorrect Answer
    B Rs. 11,250.25 Correct Answer Incorrect Answer
    C Rs. 9,480.60 Correct Answer Incorrect Answer
    D None of these Correct Answer Incorrect Answer

    Solution

    Number of times the interest is compounded = 18 ÷ 9 = 2

    Rate of interest = 18 X (9/12) = 13.5%

    So, total amount received = 8000 X {1 + (13.5/100)} 2

    = 8000 X 1.135 2 = Rs. 10305.8

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